December 5, 2018

To Our Valued Customers:

Reference: Section 301 Tariff postponement

On September 24, 2018 the U.S. Commerce Department announced a 25% tariff on $200 Billion worth of specified Chinese goods under section 301. Unexpectedly, the Commerce Department then decided to use a two-pronged approach and ultimately initiated a 10% tariff while delaying the balance of 15% in a second phase scheduled to be implemented on January 1, 2019. This would bring the total to the originally announced 25%. Legend passed the original 10% tariffs on October 8, 2018. On November 29, 2018 Legend announced a 15% price increase to be effective on January 11, 2019 reflecting this new proposed increase in tariffs in addition to a modest raw material and labor increase on very limited scope of products (in the range of 3%-5%).

This past weekend at the G20 Summit in Argentina, Presidents Trump and Xi Jinping negotiated a compromise resulting in a 90-day delay in the implementation of this next phase of Tariffs. During this time, the two sides will try to break the impasse and finalize a mutually agreeable trade pact. While this is good news, the situation is not yet resolved. However, as a result, Legend will postpone the 15% tariff increase until further notice. However, we must pass on the 3%-5% increase on the following products effective on January 11, 2019:

The new list prices for the affected sku's will be available for download at www.legendvalve.com no later than mid-December. Please call 1-800-752-2082 for any questions, a human being will answer your call and they'll be happy to assist you!

Thank you very much for your support of Legend.

Jeff Shreiner
VP Sales
Legend Valve & Fitting, Inc.