Important Update on Global Trade and Supplier Cost Pressures

At Service Parts Online, we are committed to keeping you informed about global trade policy changes that may affect your experience. Recent tariff measures have increased cost pressures on our suppliers, which may eventually be reflected in product pricing and availability.

What’s Happening?

Recent U.S. trade measures have led to multiple layers of tariffs on imports:

• For Auto Parts:
  • Initially, a 25% tariff was imposed on imported auto parts from China.
  • An additional 34% “reciprocal” tariff was then applied to all Chinese goods, including auto parts.
  • Furthermore, if China does not withdraw its retaliatory measures (its 34% tariff), an extra 50% tariff has been threatened.
  For auto parts specifically, these measures bring the effective tariff rate to approximately 104%, essentially doubling the product’s cost when imported into the U.S.

• For Parcels:
  Even if our shipments are dispatched from Australia via Australia International Express Post, if the goods are manufactured in China, they are still classified by their country of origin. This means U.S. Customs will assess the tariff based on Chinese origin.
  • The U.S. importer (in this case, the end customer) is responsible for paying the tariff, which may be passed on as part of the purchase price.
  • Previously, low-value parcels enjoyed a de minimis exemption (duty-free for shipments under US$800). However, this exemption for Chinese goods will be removed from 2 May 2025.
  • For shipments processed via the Universal Postal Union, a streamlined duty is applied – typically 30% of the declared value (or a minimum of $25 per item), rising to $50 per item after 1 June 2025.

How Does This Affect You?

Cost and Supply Pressures:

• Pricing: As our suppliers absorb these steep tariff rates – with some Chinese auto parts now facing an effective 104% tariff – you may notice that prices adjust accordingly over time.

• Availability: Disruptions in global supply chains could lead to delays in restocking certain parts.

What We’re Doing About It

At Service Parts Online, we are actively managing these challenges to maintain the service and quality you expect:

• Optimising Inventory: We are closely monitoring our stock levels and market demand to avoid shortages.

• Absorbing Costs Where Possible: We are continually reviewing our cost structures to mitigate any increases, keeping price rises to a minimum.

• Staying Informed: Our team is diligently tracking trade policy developments so we can swiftly adapt our operations and update you.

Suggestions for Our U.S. Customers

To help you navigate this changing tariff environment, here are some recommendations:

• Plan Ahead:
  If you anticipate needing specific auto parts, consider placing orders in advance. This can help you avoid potential delays and mitigate unexpected cost increases.

• Understand Tariff Responsibilities:
  Remember that, irrespective of where the goods are shipped from (e.g. via Australia International Express Post), if the products are produced in China, U.S. Customs will apply the relevant tariff based on their origin. These costs are typically borne by to you as importer.

• Keep Updated on Policy Changes:
  Global trade policies are evolving. Stay in touch with us and regularly check our website for the latest updates so you can adjust your orders accordingly.

• Contact Us for Assistance:
  If you have any questions or need guidance on how these tariffs might impact your orders, our customer service team is here to help.

How You Can Stay Ahead

• Stay Informed: Regularly visit our website and subscribe to our updates for the latest news on product availability and pricing.

• Plan Ahead: Place your orders early if you expect specific needs to minimise delays or unexpected price hikes.

• Reach Out: Don’t hesitate to contact our friendly customer service team if you have any questions or concerns.

We appreciate your continued support as we navigate these dynamic trade conditions. Rest assured, Service Parts Online remains dedicated to delivering the quality auto parts and service you rely on—even as global trade policies evolve.