If you figured the Chinese tariffs wouldn’t hit home, think again.
The City of Hollister had to swallow a $69,000 hit for additional costs on a stripe hog used to clean road markings. Part of the additional cost had to do with the manufacturer of the Stripe Hog SK2000 believing the machine was going to Hollister, Missouri where taxes are lower, while part of the cost had to do with additional tariffs imposed as part of the Chinese trade war with the U.S., a city official reported to council members Monday.
Management Services Director Mike Chambless updated the council Monday, and members unanimously approved an additional $69,000 allocation after some discussion.
Those funds came from the general fund and airport fund, since the Hollister Municipal Airport uses the Stripe Hog Waterblaster to clean rubber from runway markings.
Council members previously approved the stripe hog equipment at a $345,000 price, and when the city went to purchase the equipment that price had shot up considerably.
Chambless explained Tuesday that the price went up $12,000 due to the tariffs, while $10,000 was due to a wrong price quote and $40,000 was due to sales tax. About 80 percent of the allocation will come from the general fund.
Chambless initially told council members the entire $69,000 allocation was due to tariffs. Chambless said he talked to the city manager and the council would be updated on the changes.
As for the $12,000, President Trump about a month ago implemented tariffs on an array of Chinese goods, prompting the Chinese government to respond with its own tariffs.