Us Announces 437 Tariff Increases To Exclude Commodities (Including Textiles)

On the 17 day of the local time, the office of the United States Trade Representative (USTR) announced 3 notices of excluding the list of tariffs on China. According to the reporter's combing, the tariff exclude list involves 437 commodities. The commodities excluded are mainly components of various instruments and equipment, organic synthetic materials, daily necessities, chemicals, textiles, mechanical and electrical equipment, chemical products, iron and steel products, etc. These commodities are distributed in the 3 batch of Chinese products that have been added to the tariffs announced by the United States since last year, 34 billion US dollars, 16 billion US dollars and 200 billion US dollars respectively.

According to the American Apparel and Footwear Association, 40% of the garments sold in the United States come from mainland China, and 70% of footwear products are imported from the mainland.

With the advent of autumn, customs import products including gloves, coats, sweaters and so on. Before, many apparel practitioners had already faced a price cut when faced with the sharp offensive of online retailers. If they had to absorb tariff costs, it would be worse for the less profitable practitioners. And the exemption notice indicates that 100% of the polyester woven microfiber fabrics and polyester products in the textiles are excluded from the list. This is good news for China and the United States.

According to the statistics of the China Textile Import and export chamber, the export volume of China's textile and apparel exports to the United States last year was about 10 billion 300 million US dollars, accounting for about 16% of China's exports to the US textile and clothing and raw materials, and about 1.7 000 of the export enterprises.

Rufus Yerxa, chairman of the US Foreign Trade Council, has said that the United States no longer has the infrastructure to manufacture clothing, textiles and other related products.

For the US textile industry, the lifting of the ban on Chinese textiles at least eased the urgent need.

Many industry insiders say that the announcement of the exclusion list is good news for Chinese export enterprises in related fields, especially the enterprises that are currently striving for Christmas orders.

The revision of the tariff exclusion list is good for Chinese exporters, American importers and American consumers.

Attachment:

A total of three textile and clothing related products were published in the 200 billion exclusion list released in September 17th. They are (1) 100% polyester fabric, each inch less than 150/75 or 104/72 line, weighing 83 grams / square meter (described in the report number 5407.10.0010); (two) 65% polyester and 35% cotton fabric, thread weight less than 170 g / m2 per inch, not exceeding 45/45 or 110/76 (described in the report number 5513.11.0040); (three) polyester or viscose fabric coated with polyurethane, the width of the fabric is 137 centimeters (54 inches) and the weight is 137 grams / square meter (described in the report number 5903.20.2500).

Up to now, there are five items of textile and clothing related products in the 200 billion exclusion list, of which two have been excluded from the 200 billion exclusion list released in August 7, 2019, and the product tax numbers are 5402.20.3010 and 5603.92.0090 respectively. I will issue a public article in August 7th, the first batch of exclusion lists issued by the United States for 200 billion additional tariff products.

According to the announcement issued by USTR in June 19, 2019, the product exclusion procedure for the $200 billion tax collection list was launched in June 30, 2019 and the deadline for application is September 30, 2019. Therefore, enterprises can still apply for product exclusions (200 billion products exclude network access: http://exclusions.USTR.gov).

Summary of textile and clothing products exclusion list in $200 billion tax exclusion list

Negotiations between China and the United States are about to resume. Textile people are cautious.

For the upcoming Sino US negotiations, the textile mentality is more cautious. A trader in the Wujiang area said that Sino US trade is a combination of different factors that affect the rhythm of the market order. Now the so-called restart is not a good thing to do, but this year's devaluation is positive.

Most of the billet traders and traders believe that the outcome of specific negotiations must be seen. The news can only boost market confidence at the moment. For companies that do not involve the US alone, the impact is not very large, and the most is confidence. For companies who make beauty lists, the impact is relatively large, which will affect the order rhythm of customers. At present, many American customers are shrinking their orders and orders, which is the biggest stumbling block in foreign trade this year.

However, most of the owners said that the announcement of the exclusion list is good news for our export oriented enterprises. In particular, the bosses who are struggling to secure Christmas orders may be the turning point for this year's peak textile season.

As we all know more and more about the "trade war" and realize that it is a long-term trade dispute, it will not be as great as when it happened.

afterword

For the next negotiation, though the optimistic anticipation is more, even if the result is not satisfactory, the textile people must straighten their mind and tell themselves that there is nothing to be afraid of.

When Chinese talk about "crisis", the word "danger and opportunity" coexist. The "trade war" will be dangerous for China and the United States, because every negotiation is not clear which side of the negotiations the other party would like to negotiate. This uncertainty factor will trigger the risk of price fluctuation in the financial field and bulk goods field. However, each commodity has its own reasonable value. Once undervalued, the value will show stronger profitability.

Therefore, for trade wars, we need not blindly see risks, but also seize opportunities in risk and organically integrate industries. For example, in recent years, a series of mergers and reorganizations have emerged in the polyester industry. At the same time, we need to accelerate the upgrading of industrial technology, such as the large-scale production of robots in the industry. Only in this way can we ensure that the core technology of the textile industry is created and grasped by ourselves. No matter how the next negotiation goes, the textile people keep their original rhythm and do their products well.