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    Counterattack! China Will Impose Tariffs On 60 Billion US Products From June 1St.

    2019/5/15 13:51:00 11430

    CounterattackImpose Tariffs

    In addition, the Chinese export enterprises are passive in the short term.



    But in the long run, it will also affect the US business and consumers.



    Starting from 0:00 on June 1st, China will raise the tariff rate on the part of us merchandise which has been added to the tariff of $60 billion.



    In May 13th, the Customs Tariff Commission of the State Council issued a notice that it would explicitly impose a 25% tariff on 2493 items of tax items, impose a 20% tariff on 1078 items of tax items, and impose 10% duties on 974 items of tax items.

    The 5% tariff will continue to be imposed on 595 items of tax items which have previously been imposed on 5% tariffs.


    This move is a powerful counterattack to the US Tariff Act.

    In May 9th, the US government announced that since May 10th, tariff rates on goods imported from China for 200 billion US dollars have been raised from 10% to 25%.

    In this announcement, the announcement made it clear that the US tariff increase measures led to the escalation of Sino US economic and trade frictions, which violated the consensus between China and the United States to resolve trade disputes through consultation, damaging the interests of both sides and not meeting the general expectations of the international community.

    In order to safeguard the multilateral trading system and safeguard its legitimate rights and interests, China has to adjust tariff collection measures to some imported commodities originating in the United States, so as to respond to unilateralism and trade protectionism of the US side.


    Combing the US $200 billion merchandise list and the list of US $60 billion merchandise, we can see that many textile and clothing related products are listed in it.



    According to statistics, the tax collection list recommended by the United States covers 6031 tax numbers, of which more than 1000 textile and clothing products are tax, involving most textile materials, semi-finished products and a small number of accessories, including cotton, silk, wool, linen and other textile materials, yarns, fabrics, carpets, leather, fur clothing, hat, gloves, plastic raincoats and so on.



    The 60 billion list of tariff items included cotton, yarn, cloth, garments, scarves, scarves, bedding, gloves, bags, footwear, lace, tapes, tents, sewing machines, materials handling agents, textile and garment related products, accessories and mechanical appliances.

    (list details see last)



    Despite the statement made by President Trump on the evening of May 13th, he has not yet decided to levy tariffs on the so-called 325 billion US dollars in goods exported to China.



    In a special interview with Xinhua news agency, Rick Larsen, a joint chairman of the US House of Representatives working group of the US House of Representatives and the Democratic congressman of Washington state, said that the US government's duty to impose tariffs on Chinese products has harmed the interests of American workers and consumers, is not conducive to the US economy, nor has it helped to solve the economic and trade problems of the two countries.

    Because the US government's tariff rate on imports of $200 billion from China is raised from 10% to 25%, which will push up the prices of consumer goods in the United States, thereby affecting the lives of the American people in a wider range and having a negative impact on the US economy.



    As we all know, tariffs are to be paid by American importers. These importers can negotiate with Chinese enterprises to share part of the tariff, and the other part is passed on to consumers through the price increase.

    But because China's exports to the United States are not very profitable, the ability of American importers to distribute tariffs to Chinese companies is limited.

    This will increase the share of tariff sharing among American consumers.



    According to the voice of China, a number of data from the think tank team estimated that with the escalation of Sino US economic and trade frictions, the United States imposed tariffs on Chinese goods, of which 90% of the increased tax burden would be borne by US businesses, retailers and consumers, with only 10% of China's burden.



    In response, Gao Lingyun, a researcher at the Institute of world economics and politics of the Chinese Academy of Social Sciences, pointed out that in the short term, China's export enterprises are relatively passive. Because the products have been produced, they may take a certain proportion of tariffs according to the relative market position and product demand or elasticity of supply.

    But in the long run, if the United States levy tariffs continues, and because of market demand, the importers of the United States must buy this product, then tariffs will have to be passed on to American consumers and retailers after importers import their products.



    In fact, in August 2018, the United States initially imposed tariffs on US $34 billion in Chinese goods, and China took up 4% of its tax burden.

    After that, the US imposed a tariff of $16 billion, that is, when China levies a total of US $50 billion, China will bear 7% of the tax burden.

    In 2019, when the United States imposed a 10% tariff on US $200 billion, China's tax burden was between 9% and 10%, or 10%.

    That is to say, retailers, manufacturers and consumers in the us bear 90% of the total tax burden.




    According to the latest research report issued by Goldman Sachs Group, the US government's tariffs on China's US products will increase the percentage of us core inflation by 0.2 percentage points. If the US dollar is added to the remaining 325 billion US dollars, the US core inflation rate will rise by 0.5 percentage points.



    Liang Ming, director of the Foreign Trade Research Institute of the Ministry of Commerce of China, also believes that 6081 commodities of 200 billion dollars involve every aspect of life, and a large number of commodities need to be imported from China to the United States. If the tariffs continue to be imposed, the increase will eventually be borne by the American consumers.



    In contrast, China's imports from the United States account for more than 50% of the 200 billion US dollars, and only 124.

    Comparatively speaking, China's dependence on US goods is much lower than that of US goods to China.



    Under this influence, the proportion of China's exports to the United States has been declining this year, and the proportion of exports to the EU and ASEAN has gradually increased.

    At the same time, imports from the United States accounted for less than 10%, and also showed a downward trend, and the proportion of imports from BRICs, EU and ASEAN was relatively high.



    Experts suggest that enterprises should consider not relying on the path, open up a wider export market, strengthen economic and trade exchanges with the "one belt and one way" country, and fully tap the potential of other foreign trade.



    In addition, it is worth noting that in May 13th, the State Council Customs Tariff Commission also said that according to the application of stakeholders in China, we should exclude some eligible commodities from the scope of tariffs imposed by us and Canada.

    According to the trial method, the applicant is the interested party in the application for excluding the commodities, including those engaged in the import, production or use of the relevant commodities in Chinese enterprises or their industry associations. The scope of application may be excluded from the commodities that have been promulgated and implemented in China and have not been suspended or suspended.

    After the effective application is examined one by one, the goods excluded from the list will no longer be added to the tariffs imposed by the US 301 measures within one year from the date of the implementation of the elimination list.

    Impose a 25% tariff on the United States


    List of textiles and clothing related commodities



    Impose a 20% tariff on the United States


    List of textiles and clothing related commodities




    Impose a 10% tariff on the United States


    List of textiles and clothing related commodities




    Impose a 5% tariff on the United States


    List of textiles and clothing related commodities



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