Our company is spending roughly $80,000 a month in direct and indirect payments on tariffs, and the total will likely top $1 million in 2020. Only about 20 percent of that amount is paid directly—$206,263 in tariffs in 2019 and $44,383 in duties. However, the indirect costs are far higher due to the increased prices we have to pay our domestic suppliers in Houston that must also rely on Chinese importers and providers of raw materials.
In the pressure control portion of the oil field sector alone, a collective $2.5 million tariff is paid monthly by Canary and our direct competitors. When we also consider wholesalers and their clients (our indirect competition), the cost of tariffs on the sector is $120 million – or $10 million per month.
