Tariff News Update

The Nortek Security & Control Family of Brands

July 24, 2018

To All Nortek Security & Control Customers,

This letter is a follow up to our July 9, 2018 letter regarding the US Government’s imposition of a 25% tariff on certain categories of products imported from the People’s Republic of China.  Important to note, these tariffs are from the initial round and don’t include those most recently threatened.   As indicated in our previous letter, these tariffs are so significant, they will necessitate several actions on our part, including price increases on several product categories we supply to the market.

These increases cover some of the increased tariff costs we will incur, and our goal is to mitigate the cost increase as much as is possible. However, a 25% increase is extraordinary.  In addition to looking for more supply chain efficiencies, steps we are taking include exploring changes in the way we assemble our products. This may include some assembly in the US and moving manufacturing of certain products to other locations.  We are also submitting an application to the US Trade Office for certain products to be exempted from the tariffs.  However, these actions will take time, and unfortunately, the tariffs are already in place.

Because of the cost impact due to the tariffs, we are implementing increases for the following product categories for all orders received after August 17, 2018:

  • Residential and commercial gate and garage door operators and rails: 4%
  • Residential and commercial gate and garage door operator options, transmitters, accessories, and parts: 7.5%
  • Some residential thermostats: 7.5%
  • PERS pendants: 7.5%

These are necessary steps we must take to protect our ability to continue developing compelling new product offerings, and they cover only part of the total impact of the tariffs.  Additionally, we are concerned that the US Government may announce additional increases that will affect more product categories, and this will have greater impact on both our business and yours.  We are helping petition the US Government to find other means of resolving trade issues and hope additional tariffs do not impact us all.

We very much appreciate your business and look forward to serving you with the industry’s best solutions for years to come.

Thank you for your ongoing support and business.

Mike O’Neal


The US Trade Representative website provides information on the rules that govern the tariffs, and links to the list of affected products.

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