International Trade Today is providing readers with some of the top stories for July 15-19 in case they were missed.
INDIANAPOLIS -- There are alternatives to Congress and the FCC requiring carriers and others to remove from their networks equipment made by Chinese telecom gear makers, NARUC was told. Though some state commissioners later expressed skepticism, industry panelists (see 1:30 p.m. event listing) largely backed monitoring networks of U.S. companies for cyberattacks, including from Huawei or ZTE, and testing all equipment before installation for vulnerabilities. Stakeholders generally want testing and monitoring across the board, not limited to one company or manufacturers based in one country.
After Guatemala's high court ruled that country could not enter into an agreement that would deny Hondurans refuge in the U.S. unless those migrants applied for asylum in Guatemala, President Donald Trump lashed out July 23 on Twitter. "Guatemala, which has been forming Caravans and sending large numbers of people, some with criminal records, to the United States, has decided to break the deal they had with us on signing a necessary Safe Third [country] Agreement. We were ready to go. Now we are looking at the “BAN,” Tariffs, Remittance Fees, or all of the above. Guatemala has not been good. Big U.S. taxpayer dollars going to them was cut off by me 9 months ago," he wrote.
About 83 percent of respondents to a United States Fashion Industry Association survey say they'll reduce the amount of apparel they source from China in the next two years -- a strong increase from the 67 percent who said they planned to do that last year. But given that only 6.7 percent said their reductions in Chinese sourcing would be significant, it appears that Section 301 -- and the uncertainty of whether more apparel will be affected -- has had somewhat muted effects on the industry.
CBP created Harmonized System Update (HSU) 1913 on July 21, containing 113 Automated Broker Interface records and 23 Harmonized Tariff Schedule record, it said in a CSMS message. The update includes adjustments required by the Office of the U.S. Trade Representative's announcement of new exemptions from Section 301 tariffs on China (see 1907080008). Modifications required by the verification of the 2019 HTS are included as well.
China believes trade “frictions” with the U.S. “should be resolved through dialogue and consultation,” said a Foreign Affairs Ministry spokesperson Wednesday. He was asked about President Donald Trump’s remarks at a cabinet meeting Tuesday that the U.S. has a “long way to go” before reaching a trade deal with China and can still impose the threatened List 4 Section 301 tariffs on $325 billion worth of Chinese goods “if we want.” If the U.S. “thinks there is still a long way to go before a deal is concluded, well, as the Chinese saying goes, a journey of a thousand miles begins with a single step,” said the spokesperson. “No matter how long the way is, as long as you step forward, you will eventually reach the destination.” Amid the U.S. threat to impose the List 4 duties, “China will firmly defend its own interests,” said the spokesperson. “If the U.S. does impose new tariffs, that will indeed set new obstacles for the trade talks. There will be an even longer way to go before reaching a deal.” The U.S. tech industry paid $1.3 billion in tariffs on Chinese goods in May, more than six times more than it paid in May 2018, despite a 31 percent decline in imports, said CTA Wednesday. Though the Trump administration delayed enacting List 4, "U.S. workers, families and businesses are still paying billions of dollars more than they otherwise would," said CTA President Gary Shapiro. "The economic pain for everyday Americans and our companies will only grow, since tariffs have more than doubled on the largest list of products."
China believes that trade “frictions” with the U.S. “should be resolved through dialogue and consultation,” a Foreign Affairs Ministry spokesperson said on July 17. He was asked about President Donald Trump’s July 16 Cabinet meeting remarks that the U.S. has a “long way to go” before reaching a trade deal with China and can still impose the threatened List 4 Section 301 tariffs on $325 billion worth of Chinese goods “if we want.” If the U.S. “thinks there is still a long way to go before a deal is concluded, well, as the Chinese saying goes, a journey of a thousand miles begins with a single step,” the spokesperson said. “No matter how long the way is, as long as you step forward, you will eventually reach the destination.” In the face of the U.S. threat to impose the List 4 duties, “China will firmly defend its own interests,” the spokesperson said. “If the U.S. does impose new tariffs, that will indeed set new obstacles for the trade talks. There will be an even longer way to go before reaching a deal.”
China believes that trade “frictions” with the U.S. “should be resolved through dialogue and consultation,” a Foreign Affairs Ministry spokesperson said on July 17. He was asked about President Donald Trump’s July 16 Cabinet meeting remarks that the U.S. has a “long way to go” before reaching a trade deal with China and can still impose the threatened List 4 Section 301 tariffs on $325 billion worth of Chinese goods “if we want.” If the U.S. “thinks there is still a long way to go before a deal is concluded, well, as the Chinese saying goes, a journey of a thousand miles begins with a single step,” the spokesperson said. “No matter how long the way is, as long as you step forward, you will eventually reach the destination.” In the face of the U.S. threat to impose the List 4 duties, “China will firmly defend its own interests,” the spokesperson said. “If the U.S. does impose new tariffs, that will indeed set new obstacles for the trade talks. There will be an even longer way to go before reaching a deal.”
There’s no question China “has engaged in unfair trade practices such as forced technology transfer and intellectual property theft,” Sen. Dianne Feinstein, D-Calif., wrote U.S. Trade Representative Robert Lighthizer June 17, as posted Tuesday in docket USTR-2019-0004. “The question is whether the broad-based tariffs imposed and proposed by the current administration are the right approach to addressing such issues,” said Feinstein. “They are not.” The Section 301 tariffs on Chinese imports “threaten U.S. jobs and businesses, including so many of those in California that rely on international trade,” she said. “The ports of Los Angeles and Long Beach, which handle nearly half of the container trade with China, have seen the flow of goods slowed due to the tariffs and the uncertainty surrounding them.” Feinstein has heard from “numerous” California companies “about the pain the tariffs are causing them,” she said. The tariffs are “disrupting their supply chains and raising their costs of doing business in ways that damage their competitiveness and in some cases, threaten their existence,” she said. The “primary impact” of the proposed List 3 tariffs “will be to damage our own citizens, businesses, and economy,” she said. “I urge you to pursue alternative approaches to address real trade issues with China.” Lighthizer’s office didn’t comment Tuesday. Three rounds of 25 percent tariffs remain in effect on roughly $250 billion worth of Chinese imports. President Donald Trump last month delayed putting the threatened List 4 duties into effect on virtually all remaining Chinese goods as the U.S. and China try to restart talks toward a comprehensive trade deal (see 1907010015). U.S. and Chinese negotiators remain in close "communication" by phone, but there's not yet a date for their next face-to-face meetings, said a Chinese Foreign Affairs Ministry spokesperson Tuesday. He denied as "entirely misleading" Trump's claim in a Monday tweet that China's Q2 economic performance was its worst in 27 years and is why China wants to make a deal. China's GDP grew 6.3 percent in 2019's first six months, which was "quite a good performance, especially when you compare it with that of other major economies," said the spokesperson. "China is not the only one that wants to conclude a trade deal. The U.S. wants it too. American people, especially consumers, strongly oppose the trade war and the additional tariffs on Chinese goods. Their voice speaks volumes."
There’s no question China “has engaged in unfair trade practices such as forced technology transfer and intellectual property theft,” Sen. Dianne Feinstein, D-Calif., wrote U.S. Trade Representative Robert Lighthizer June 17, as posted Tuesday in docket USTR-2019-0004. “The question is whether the broad-based tariffs imposed and proposed by the current administration are the right approach to addressing such issues,” said Feinstein. “They are not.” The Section 301 tariffs on Chinese imports “threaten U.S. jobs and businesses, including so many of those in California that rely on international trade,” she said. “The ports of Los Angeles and Long Beach, which handle nearly half of the container trade with China, have seen the flow of goods slowed due to the tariffs and the uncertainty surrounding them.” Feinstein has heard from “numerous” California companies “about the pain the tariffs are causing them,” she said. The tariffs are “disrupting their supply chains and raising their costs of doing business in ways that damage their competitiveness and in some cases, threaten their existence,” she said. The “primary impact” of the proposed List 3 tariffs “will be to damage our own citizens, businesses, and economy,” she said. “I urge you to pursue alternative approaches to address real trade issues with China.” Lighthizer’s office didn’t comment Tuesday. Three rounds of 25 percent tariffs remain in effect on roughly $250 billion worth of Chinese imports. President Donald Trump last month delayed putting the threatened List 4 duties into effect on virtually all remaining Chinese goods as the U.S. and China try to restart talks toward a comprehensive trade deal (see 1907010015). U.S. and Chinese negotiators remain in close "communication" by phone, but there's not yet a date for their next face-to-face meetings, said a Chinese Foreign Affairs Ministry spokesperson Tuesday. He denied as "entirely misleading" Trump's claim in a Monday tweet that China's Q2 economic performance was its worst in 27 years and is why China wants to make a deal. China's GDP grew 6.3 percent in 2019's first six months, which was "quite a good performance, especially when you compare it with that of other major economies," said the spokesperson. "China is not the only one that wants to conclude a trade deal. The U.S. wants it too. American people, especially consumers, strongly oppose the trade war and the additional tariffs on Chinese goods. Their voice speaks volumes."