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U.S. BUSINESS PREPARES FOR NEXT WAVE OF TARIFFS ON 100% OF GOODS FROM CHINA

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U.S. BUSINESS PREPARES FOR NEXT WAVE OF TARIFFS ON 100% OF GOODS FROM CHINA

Over several days in late June, trade policymakers in Washington listened to the testimony of hundreds of businesses and industries from sports fishing to booksellers, bakers and bicycle makers, logistics companies, and inventors of healthcare and high tech products. Most wish to avoid the next wave of tariffs that would apply to nearly 100 percent of the goods we import from China.

Meanwhile, more microeconomic effects can be understood by examining the thousands of requests that companies and associations have made to the administration, each asking that specific products be excluded from tariffs already in effect. To achieve an exclusion, applicants must explain how the product needed might be too costly or not widely available for purchase outside China.

They must also analyze whether the product is strategically important or relevant to China’s Made in China 2025 industrial ambitions.

Economists Christine McDaniel and Danielle Parks break down the status of how the administration is responding to these product exclusion requests. TradeVistas offers this graphic to summarize their detailed investigation, and to help you keep track of “tranches” or waves of tariffs announced or implemented by the administration over the last year or so.

Feel free to use and share our graphics.

Wave of China Tariffs TradeVistas

Want to dive deep into the product exclusion process and outcomes to date? Read McDaniel’s full paperInvestigating Product Exclusion Requests for Section 301 Tariffs with links to full data sets.

 

 

 

 

 

 

 

Andrea Durkin is the Editor-in-Chief of TradeVistas and Founder of Sparkplug, LLC. Ms. Durkin previously served as a U.S. Government trade negotiator and has proudly taught international trade policy and negotiations for the last fourteen years as an Adjunct Professor at Georgetown University’s Master of Science in Foreign Service program.

 

This article originally appeared on TradeVistas.org. Republished with permission.

U.S., China Planning New Hi-Tech Tariff Cut Agreement

Los Angeles, CA – The U.S. and China have reached an “understanding” on a deal that would eliminate more than 200 tariffs on certain high-tech goods.

Speaking with the media at the current Asia Pacific Economic Cooperation (APEC) conference in Beijing, U.S. officials said that the quasi-agreement is yet to be finalized in detail.

They did say, however, that an agreement would include the phased-out removal of tariffs on such goods as medical devices, global positioning systems, computer software, and video game consoles.

No specific timeline was given on finalizing a broader agreement, which would have to be vetted by the World Trade Organization.

Talks on a proposed hi-tech trade deal collapsed last summer due to disagreements over what products would be covered by an expanded agreement. A finalized deal would mark the first major tariff reduction agreement by the WTO in 17 years.

According to the Office of the U.S. Trade Representative (USTR), a new agreement would affect $4 trillion in annual trade and dismantle a tariff system that adds as much as 25 percent to the cost of imported high-tech products sold in the U.S.

“We already export over $2 billion of high-tech, high-end semiconductors, even with 25 percent tariffs,” said USTR Michael Froman. “Eliminating those tariffs will obviously expand that trade significantly. It’s an area where we have a comparative advantage, and where we can support a lot of good, well-paying American jobs.”

11/12/2014