Firstly, thank you for your trust and confidence as a critical Trajan customer. As our industry works to understand and address recent introductions of unprecedented tariffs, I wanted to update you on Trajan's position and actions at this time. As you may know Trajan is a global business with operations both inside and external to the USA, and as such this both results in varying impact across our portfolio and affords mechanisms to attempt to address the impact of these tariffs further over time.
US importation Tariffs: For products that are manufactured within our US sites, while there may be minor material cost escalation related to imported materials, for most of our products we do not foresee any significant changes at this time to product price. For finished products originating from outside the USA and imported into the USA the current 10% tariffs will impact the importation cost. The resultant, exact impact of this on final product price is detailed in the enclosed updated price lists that are effective immediately for products sold in the USA. We recognize that the initial approach of including these tariffs in the unit price (due to constraints with our ERP system) is not ideal, we have a team aggressively seeking a solution to break this out as a separate line item and will keep you updated as this progresses.
Trajan is actively working to define plans to mitigate these factors where possible over time through the duplication of manufacturing capability. Such actions may include the following and my team will keep you constantly updated as key initiatives advance:
- Trajan is exploring the potential to transfer or duplicate key processes to provide expanded 'Country of Origin' options where that makes sense, and real savings can be achieved.
- We will also explore opportunities to import unfinished products at lower values where final valued-adding steps or configurations may be possible to perform at one of our US sites.
- In situations where you might be reexporting the product we suggest that the global Trajan Group may be able to ship directly from our offshore production site to the end destination/region.
Finally, I would also like to again highlight the significant breadth of our consumables and components portfolio that is manufactured outside of the US, (GC columns, inlet liners, analytical syringes, and many more product lines), providing significant opportunity for tariff free importation into China. We welcome any enquiries that you may have should this be helpful.
Again, we thank you for your partnership, and understanding as like all in our industry we work though this unprecedented situation,
Yours respectfully
Sam Evans
Senior Vice President - Customer Relationships