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    Trump Showdown, The US Economy Has Lost Eight Hundred, And Business Tycoons Are Against It! (Involving 917 Textiles)

    2018/9/20 9:45:00 42

    TrumpTextilesSino US Trade

    In the evening of Monday evening Eastern time, trump announced a new round of tariffs on China:

    From September 24th, tariffs on goods worth $200 billion from China will be subject to a 10% tariff, and will rise to 25% as announced in January 1, 2019.


    The $200 billion tariff list has made a series of revisions, including the addition of Internet technology products and other electronic products, printed circuit boards and consumer goods, as well as Chinese seafood, furniture and lighting products, and tires.

    Chemicals, plastics

    Bicycles and baby car safety seats.

    It is unclear whether the government will exempt any products listed on the list announced in July.

    After protests from the industry, the White House deleted the smart watches, Bluetooth devices, bicycle helmets, plastic gloves, and other high-tech products such as Internet routers and some food products from the tariff list.

    textile

    It is still in the list, which will lead to the US industry being forced to find new suppliers, raise prices or lay off workers.

    200 billion textile taxes

    For our country

    textile industry

    The list still includes 917 tariff details from 50 to 60, involving all kinds of textile yarns, fabrics, industrial finished products and some household textiles, etc., involving annual export volume of over US $4 billion.

    Bloomberg quoted two senior US officials who did not want to be named, saying that the US government postponed the tariff rate to 25% until next year, which is an opportunity for US companies to adjust and find alternative supply chains.

    Another analysis is that the White House plans to raise taxes before the end of the year's holiday season, in order to curb sales of Chinese imports before the peak season for gifts and discounts.

    Trump said: "the United States is a developing country!" listen, weird...

    The phrase "the US is a developing country" sounds strange, but it comes from the mouth of President Trump of the United States.

    Yes, Trump called the United States a "developing country" and asked the us not to spend money on other developing countries.

    The magic speech appeared in a speech in Fargo, North Dakota, in September.

    At that time, Trump asked the United States to stop helping developing countries such as India and China in the fundraising activity, instead of focusing on the US capital.

    "We are also a developing country, aren't we? What I care about is that the United States is a developing country, because we are also growing, and we need to grow faster than others."

    Trump was very dissatisfied with dividing China and India into developing countries. He thought it was the rule of WTO that the huge economies were allocated the wrong category, resulting in a large amount of subsidy from US funds.

    "Some countries are considered to be growth economies, and some are still developing, so we pay them subsidies.

    The whole thing is crazy. "

    "We are giving them money, but now we have to stop this, we must stop! We can not let China take 500 billion dollars from the United States every year (refer to the trade surplus) and then use it to build their own country."

    This theism of "the US is a developing country" has been cheered by the spectators on the scene, which does not make the media wonder because North Dakota is a traditional Republican site and its support for Trump can be as great as it can be.

    Huge negative impact on the US economy

    Until 2019, the United States

    Retail

    The overall impact of these tariff measures may be felt.

    For many retailers, tariffs on raw materials will substantially increase production costs, but some large US electricity suppliers say they can withstand rising prices.

    However, small businesses may not be so lucky.

    It is reported that eMarketer, the market research firm, is the first to examine the impact of tariffs from the perspective of top US electricity supplier companies.

    The picture shows the total sales volume of 10 major US retailers in the US (end July 2018):

     

    The impact of tariffs on e-commerce platforms and small sellers

    Amazon and eBay two big business giants rely on small sellers selling on their platforms.

    EBay relies heavily on this platform mode, but even for Amazon, its platform sales account for 68% of total sales, and this growth rate is faster.

    As many small retailers in the US are sourcing products from China, tariffs may slow the growth of electricity suppliers' sales.

    These sellers are not as strong as WAL-MART and The Home Depot, so they may have to raise their prices or reduce their purchases to China next year.

    Data from Consultation Service Co Teikametrics show that the number of Chinese sellers who sell goods directly to American consumers through the Amazon FBA delivery plan has increased rapidly, increasing by 100% over the past 6 months.

    Clothing, electronics and furniture are in trouble in the US.

    Best Buy, the US electronics retailer, is unlikely to be "unscathed" in the tariff war.

    As the cost of raw materials increases, the prices of TV and electronic products may rise.

    In June this year, the United States Trade Representative Office (USTR) published a large number of tax lists that included TV parts and monitors.

    In August this year, the Apple Corp submitted a document to the US Securities and Exchange Commission to elaborate on the "negative effects" that tariffs might have on the company.

    The specific negative effects are not yet clear, but the new round of the proposed tariff list includes health trackers. 200 billion, the entry into force of tariffs will affect Apple Watch.

    Apple smart Watch

    Sales.

    Apple will be able to bear some of the losses, so the company may not pass the higher price on to consumers.

    But from a larger perspective, the decline in profits may affect Apple's earnings and may have an impact on the US economy, especially after Apple became the first US company to have a market capitalization of $one trillion in August.

    Although American luxury brands like Michael Kors and Tapestry have been turning to these raw materials from Vietnam and other countries in the Asia Pacific region, retailers such as Messi, Macy's sell many brands of clothes, shoes and handbags, so levying tariffs on leather, silk, wool, cotton, fabrics and artificial textiles such as polyester can affect the sales of these retailers.

    Furniture sales will be greatly affected by tariffs, especially for online retailers like Wayfair, whose margins are very low and are heavily dependent on Chinese products.

    These discount retailers also have an efficient supply chain that starts overseas, and this supply chain can not be completely pformed overnight.

    The retail mode and low profit of US retail giant Costco may also be affected by tariffs.

    In 2017, before implementing the tariff, Richard Galanti, executive vice president and chief financial officer (CFO) of Costco, estimated that about 25% of the products of the company were manufactured overseas.

    China has wide coverage, and the US can not contain it at all.

    Many retailers and trade associations in the United States have been strongly opposed to tariff wars.

    In March 2018, 24 retailers, including Costco and WAL-MART, expressed concern about the tariffs on consumer goods.

    The Retail Industry Leaders Association, American Apparel & Footwear Association and the United States Retail Federation (National Retail Retail) have also released their positions. The data they quoted show that over 41% of the clothing products, more than 72% of footwear products and more than 84% of the tourism products in the US market are made in China.

    Although Dong Minglun, President and CEO (Chief Executive Officer), Doug McMillon acknowledged the uncertainty of the proposed tariffs in the second quarter earnings call conference in 2018, he said: "the number of goods we buy in the United States is far more than that purchased from any other country." (Doug)

    But buying from us suppliers does not necessarily mean that these products are produced in the United States.

    The Chinese side has come up against it. It is well founded.

    Earlier, the Chinese Foreign Ministry has responded to this question by saying that if the US imposed a new round of tariffs, the Chinese side would have to reverse it.

    In order to defend the free trade and multilateral system and defend its legitimate rights and interests, the Chinese side had to impose tariff measures on the list of about $60 billion.

    In accordance with the laws and regulations of the People's Republic of China foreign trade law and the People's Republic of China import and export tariff Ordinance and the basic principles of international law, the Customs Tariff Commission of the State Council has decided to impose tariffs of 10% or 5% on 5207 items of tax or about 60 billion dollars originating in the United States since its approval from the State Council. It has been implemented since September 24, 2018 at 01 hours in 12 hours.

    If the US insists on further raising the tariff rate, the Chinese side will respond accordingly, and the matter will be announced separately.

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