Strike 'Comprehensive' China Deal That Ends Tariffs, US Chamber Urges Administration
The U.S. Chamber of Commerce strongly opposes the Trump administrations use of “unilateral” Section 301 tariffs as a “policy response” to China’s allegedly unfair trade practices, it commented June 14, in remarks posted Monday in docket USTR-2019-0004. The Chamber urges the administration to return to the negotiating table and strike “a high-standard, comprehensive, enforceable” trade agreement with China that “puts an end to tariffs already in place and forestalls further disruptions to the livelihood of all Americans,” it said.
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
The high volume of written comments opposing the tariffs “speaks volumes about the damage the tariffs are having and will continue to do,” said the Chamber. “Tariffs are hidden, regressive taxes that are being paid by U.S. businesses and consumers, paradoxically harming U.S. competitiveness.” Nearly 2,700 comments were posted in the List 4 docket through Monday, the vast majority opposing the duties on Chinese goods.
The tariffs are "obviously doing very well because we’re taking in billions and billions of dollars from China," President Donald Trump told reporters Saturday. "We would be from others, and we might be from others, but billions of dollars are coming in from China. And, frankly, look at what’s happening with the stock market, which is pretty much what I’ve been saying." Trump saw an article that morning that he said the tariffs are having very little effect on costs going up -- and, in some cases, no effect.
U.S. tariffs, combined with Chinese retaliation, “are disrupting global trade and supply chains, further damaging American businesses, workers, farmers, ranchers and investors,” said the Chamber. “Unilateral tariffs have no record of historical success and have always led to unintended consequences,” it said, citing several examples.
There exist “better alternatives” to curb China’s allegedly bad trade behavior “that would not have the same adverse impacts” on the U.S. economy as tariffs, said the Chamber. It’s “critically important” for the administration to “work constructively with like-minded partners to address common concerns with China’s trade and investment policies,” it said. The tariffs are “splitting” the U.S. from its allies, “hindering joint action to effectively address shared challenges,” it said.
Q1 global smartphone display shipments plunged 20 percent sequentially from 2018's Q4, and are poised to decline again in the Q2 and Q3, “as the U.S.-China trade war worsens the wireless market’s woes,” reported IHS Markit Monday. Q1 shipments declined 9 percent year-over-year, said IHS. With the smartphone business “already facing a number of headwinds” in Q1, the anticipated declines in Q2 and Q3 reflect “mounting concerns about the impact of the trade dispute on global wireless demand,” it said.
The display business "serves as an early indicator of smartphone market trends” because it falls at the beginning of the supply chain, said IHS. “Right now, that indicator is flashing warning signs as smartphone OEMs and ODMs [original design manufacturers] reduce their display orders. Although other factors are negatively affecting smartphone demand, supply-chain participants now are expressing specific concerns about the repercussions of the trade war.”
Prices for smartphones would “rise across the board” if the administration makes good its threat to impose 25 percent List 4 tariffs on products shipped to the U.S. from China under the 8517.12.00 import subheading, said a CTA-commissioned Trade Partnership study. The cost of phones imported from China would rise by 22 percent, while for phones from all sources combined would rise by 14 percent, it said. About $45 billion worth of smartphones were shipped to the U.S. from China last year, said International Trade Commission data.