From Stu Rankin and the TCA listserv, who received this notice from a dealer.  One assumes that Lionel is next if they haven't already communicated with their dealers. Time will tell.

 

Tariff News.

"I received this from MTH this week:

Tariff Pricing Increases To Begin In September
August 9, 2019 – The U.S. will expand tariffs on Toys coming from China, which includes all model railroad products imported from China for all manufacturers - including M.T.H. Electric Trains. The tariffs will go into effect beginning September 1st when the U.S. Government begins charging importers a 10% fee on the cost of those goods.

What does this mean for M.T.H. Electric Trains and our customers?

In short, it means our costs are rising by 10% and this cost has to be passed on to the retail distribution chain (our retailers and distributors) at a rate of 7.5% for the affected goods. To offset that increase, M.T.H. will raise the MSRP for the affected goods by 10%. Naturally, should the government lower or remove the rates in the future, we'll adjust or eliminate the increases as needed.

Which goods are affected?

In general, all merchandise received at M.T.H. Electric Trains on or after September 1, 2019 will be affected except Premier and HO Steam locomotives, Z4000 transformers, Proto-Smoke Fluid and some DCS components which are produced in South Korea, Thailand or the U.S. In-stock merchandise will not be affected until or if those items are replaced with new production runs received after September 1, 2019. For example, track and transformers that are in-stock today will not be affected by the new pricing until the current in-stock quantities are depleted and replaced with new quantities received in the future."

 

 

 

 

Original Post

Though not entirely clear based on the wording in the above post, the South Korea sourcing could be referring just to DCS components.  I would think all involved would like more clarification.  My 2007 delivered premier steam loco was made in S. Korea.  Can't comment on current proto-3 Premier Steam since I don't have any.

You can have a steam train ...If you'd just lay down your tracks.

Interesting, while Broadway Imports  Limited has decided to pass on 7% of that 10% tariff increase to customers, MTH will pass on the 7.5% to dealers and increase the m.s.r.p. by 10%. It will be interesting to see how Lionel handles the 10% increase. Should be interesting, folks. Buckle up and hold on for what's coming up next!!!

ogaugeguy

LCCA


 




ogaugeguy posted:

While Scott Mann of Broadway Limited has decided to pass on only part of the 10% tariff increase to dealers, MTH has decided to dump the entire 10% onto the dealers.

Scott Mann has nothing to do with Broadway Limited.  Please reread the original post; MTH is NOT passing the 10% on to the dealers.

Stu

NOT LionelLLC posted:
ogaugeguy posted:

While Scott Mann of Broadway Limited has decided to pass on only part of the 10% tariff increase to dealers, MTH has decided to dump the entire 10% onto the dealers.

Scott Mann has nothing to do with Broadway Limited.  Please reread the original post; MTH is NOT passing the 10% on to the dealers.

Stu

Thank you, Stu. I've corrected my original post.

ogaugeguy

LCCA


 




jini5 posted:
ogaugeguy posted:

So dealers who sell MTH products for full m.s r.p. will see a 2-1/2% increase in MTH items since MTH will be charging dealers 7-1/2% more?

Above statement probably true, but who buys at full msrp anymore?

"In short, it means our costs are rising by 10% and this cost has to be passed on to the retail distribution chain (our retailers and distributors) at a rate of 7.5% for the affected goods."

This pretty much indicates that the discounted prices will also rise unless the dealers decide to eat the 7.5% increase.

Rusty

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GregR
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330-757-3020

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