Views: 5 Author: Site Editor Publish Time: 2018-07-27 Origin: Site
The largest trade war in economic history has officially started.
According to the US Trade Representative Office (USTR) 301 clauses on the import tax of Chinese imports issued at 0:01 am (12:00 Beijing time) on July 6th, US time, the United States officially started on the first batch of 818 categories on the list. The $34 billion Chinese product is subject to a 25% import tariff. China immediately counterattacked and imposed tariffs on some goods imported from the United States, most of which were agricultural products.
The two lists focus on “Made in China 2025”.
The first list was adjusted based on the list of 1,333 product plans announced in March, removing 515 products with relatively low technical content and retaining 818 products, mainly in inorganic chemicals, electromechanical and optoelectronic products. 9 major categories of products.
The US's intention to crack down on "Made in China 2025" was reflected in the adjusted first list. The focus was on China's electromechanical products, which were listed in the printed circuit components for remote controls and vending machines. In addition, many of the parts used on the board, such as resistors and capacitors, are also subject to tariffs. The report pointed out that tariffs may also increase the cost of repairing some consumer electronics products (such as printers and copiers) because the parts and accessories of these products are now facing new taxes.
At the same time, the 86th product (mainly related to railway vehicles and their parts and components) was completely retained, which revealed the US concerns about China's railway construction.
The second list or the addition of 284 products will require further hearings and review before the corresponding tariffs are established. The taxation items in Listing 1 are mainly PVD equipment and testing equipment. It is reported that List 2 has supplemented this or includes precision instruments and equipment. At the same time, List 2 mainly added tax increases in the fields of integrated circuits, fiber optic cables, electric vehicles and components, instrumentation, and petrochemicals.
American technology companies are complaining.
Among the technology industry, the biggest impact on the new US tariffs is semiconductors and related products. The Semiconductor Industry Association (SIA) estimates that the amount of imports from China in 2017 will be US$2.5 billion. Austin Ramirez, chief executive of Husco International Inc., said that the company's parts purchased from China were all on the tax list, and that tariffs put Harsco at a disadvantage in the face of Japanese and German competitors.
The New York Times reported on July 6 that Harsco International is a parts supplier for companies such as Ford Motor Co., General Motors, Caterpillar and John Deere.
The Wall Street Journal reported on July 4 that light-emitting diode (LED) upstream chip manufacturing company Cree, Inc. (CREE.US) failed to obtain exemption from the Trump administration, starting from July 6th in Huizhou, China. The LED chip products shipped back to the US by the factory will face a 25% tariff.
In the written testimony, Cree mentioned that non-US competitors such as German manufacturer OSRAM Licht AG and Japanese manufacturer Nichia Corp. may have unexpected gains.
Fortunately, you can apply for a tariff forgiveness.
The Office of the US Trade Representative Office (USTR) announced on July 6 that companies seeking to obtain tariff exemption for Chinese imports can apply by October 9, 2018 (90 days).
The USTR exemption will be validated from July 6, 2018 and will be valid for one year. USTR will consider whether the product can be obtained from sources outside China, whether the additional tax will cause serious economic damage to the applicant or other US interests, and whether the specific product is related or strategically important to the Chinese industrial plan (including "Made in China 2025" ").
Once the application is submitted and published at www.regulations.gov, public comments will be collected over the next 14 days and the opponents may file an objection within an additional 7 days.
The Institute for Supply Management (ISM) announced on July 2 that the supplier delivery index of the US Manufacturing Purchasing Managers Index (PMI) jumped to 68.2 in June 2018 from 62.0 in May, marking May 2004 (68.3). Since the new high, the delivery speed on behalf of suppliers has slowed significantly. According to fxstreet.com, ANZ pointed out that this is the second highest level since 1979.
ISM Chairman Timothy R. Fiore said the Commercial Investigation Board found that quotations including metals (all steel, steel components, aluminum and copper), chemicals, corrugated paper, freight, electronic components, fuel, plastics and wood products all rose, aluminum, Electronic components, steel, steel products, electrical components and freight are still in short supply.
