Our wonderful industry is experiencing an excellent 2018 overall. National economic indicators have gained traction across several key metrics and the forecast for the holiday season indicates record spending this year as consumer confidence is high. IMAX Worldwide Home is keeping an optimistic outlook as we enter the fourth quarter despite ever-present variables inherent in international trade.
Recently, the United States announced a series of tariffs on goods and materials that are manufactured in China. As an importer of home décor, many of IMAX Worldwide Home’s products are included on the list of goods that are subject to the additional 10% tariff enacted September 24th. To help our customers, we are currently absorbing the 10% tariff increase and will continue to do so without price increases for the remainder of 2018.
We are very hopeful that the United States government will not enforce the increase to 25% on January 1, 2019. If this happens, we will not be able to completely absorb the increased tariff burden and a price increase may be required on applicable items at that time. We will partner with our factories and customers to minimize the full impact. Please know that IMAX Worldwide Home is committed to helping our valued customers navigate the current and pending tariffs and that we will keep you updated as relevant information becomes available.