In April, the White house released a list identifying some 1,300 Chinese exports that could be targeted as part the tariffs being levied against China. -Some dental products made the list, including denture teeth, dental burs, instruments, and apparatus used in dental
•The NADL issued an alert that fixed and removable dental restorations that come from China likely would be subject to it.
•Unfortunately for American dental labs, the results seem to have backfired. Fixed and removable dental work fabricated in China have remained unaffected by tariffs, leaving US dental labs paying more for supplies than their Chinese counterparts while prices on Chinese dental work continue to fall.
•According to Reuters, some overseas competitors outside of China, such as Modern Dental in Hong Kong, have even benefitted from the impact of aggressive US tariffs.
•Possibly feeling some backlash of Chinese their investments, shares of Dentsply Sirona Inc. tumbled 18.7% In August to close at a 5½-year low
•Relief in sight? Presidents Xi Jinping and Donald Trump agreed to a 90-day trade truce to allow for further talks
•“From a laboratory industry standpoint, none of this is new,” says Bennett Napier, executive director of the NADL. “We expect offshore will continue to grow because of the pricing formulas that DSOs tend to look for in a laboratory.”
•A thoughtful article in last year's Dental Products Report features some great strategies to remain competitive without taking part in an unwinnable price war with your overseas rivals.