China holds up to 80% of the world’s reserve of Tungsten. China does not pay the duties and tariffs that our government imposes on their goods. As American taxpayers, we pay the tariffs and duties as costs for the imported goods.
Tariffs are taxes paid by importers when the goods arrive, but tariffs and duties are passed along to consumers in the form of higher prices.President Reagan once made an enthusiastic case against protectionism, warning that tariffs “hurt every American worker and consumer,” drive prices higher, and lead to job losses.
While it may look like they are doing the patriotic thing, Reagan said, over the long run such trade barriers hurt every American worker and consumer.
1. Tungsten is an important ingredient of snowplow blades. The standard tungsten carbide snowplow blade is 85% material, which Tungsten is 60% of the material.
2. The tariffs were increased 25% under Biden and the 20% under Trump for a total of 45%. The increase will be borne by every state and local municipality who buys tungsten carbide blades.
The tungsten snowplow manufactures have no options. They must increase prices or ask for decreases in material costs. Since the snowplow blade is an old commodity their supplier, who is Chinese, have long run out of price reductions. Tungsten carbide is becoming a depleted raw material.It is too late to hedge and purchase before the tariffs go into effect. Tariffs are in place now. Time to look at future snow blade budgets!
