Dear Valued Customer,

We are writing to you regarding a very important topic that has significant consequences on several products and product lines sold by The Gerson Companies. We are all reading and hearing about the on-going “trade war” between the United States and China, and the potential for a third round of U.S. import tariffs. To date, the first two rounds of tariffs – at a 25% incremental duty on the designated goods imported into the U.S. – has had very limited impact on Gerson’s products.

However, the proposed third round of tariffs, at a 10% incremental duty on over 6,000 assorted consumer products, would impact several of Gerson’s product lines. Based on our current understanding, if the third round of tariffs were to be enacted, they would go into effect in September/October 2018. As a result, Gerson would be required to pay an incremental 10% duty on certain designated items that would clear customs after September 2018.

While we hope that the current administration is able to negotiate a trade agreement with China that does not include these new tariffs, we have to be prepared for the worst case scenario. The impact of the increase in import duty of 10% would mean that Gerson will have to increase the sell price of the effected products as much as 10% in order to offset the incremental duty expense. This price increase would go into effect immediately this fall in the event the third round of tariffs is implemented.

This price increase would be on several of our Gerson Everyday™ product lines as well as on several product categories in our Gerson International™ Spring 2019 product offering. If a price increase on our tariff-impacted products is necessary, we will contact you advising about the change in prices on all of the related products

We will keep you informed of any impact these trade negotiations have on our prices as this process progresses. In the meantime, we will post any relevant information or articles on our website.

Please do not hesitate to contact us with any questions.

 

Best Regards,

Associates of The Gerson Companies