China will take “necessary countermeasures” if the U.S. follows through on threats to increase tariffs on Chinese goods, according to an unofficial translation of a statement released by the Chinese Ministry of Commerce on May 8. “The escalation of trade friction is not in the interests of the people of the two countries and the people of the world,” the statement said. “The Chinese side deeply regrets that if the US tariff measures are implemented, China will have to take necessary countermeasures.”
The Office of the U.S. Trade Representative notice on the increase in Section 301 tariffs for the third tranche of goods from China (see 1905080004) mentions that a new exclusion process will be coming for that group of products. The notice, which said that the tariffs will go from 10 percent to 25 percent for the third list of goods from China at 12:01 a.m. on May 10, also seems to indicate some differences from previous tariff implementation instructions on the timing.
China confirmed Tuesday that Vice Premier Liu He will lead the delegation that travels to Washington for the 11th round of U.S. trade talks opening Thursday. Trade experts originally speculated Liu’s presence at the talks could augur well for a possible breakthrough to fend off President Donald Trump’s threat to hike Section 301 tariffs to 25 percent on the third tranche of Chinese imports (see 1905060015).
The Office of the U.S. Trade Representative is set to publish on May 9 a notice on the increase in Section 301 tariffs for the third tranche of goods from China. The tariffs will go from 10 percent to 25 percent for the third list of goods from China at 12:01 a.m. on May 10, the USTR said. That increase was previously delayed while negotiations with China were underway. China's Vice Premier Liu He will be in Washington for further discussions this week "to make a deal," President Donald Trump said in a May 8 tweet.
Industry reacted against President Donald Trump’s surprise tweets Sunday threatening to hike to 25 percent the Section 301 tariffs currently at 10 percent on $200 billion in Chinese imports, effective this Friday. The uproar overshadowed industry’s response to Trump’s accompanying threat to impose 25 percent tariffs “shortly” on $325 billion more in Chinese goods previously “untaxed.” That would cover virtually all remaining imports to the U.S. from China.
Industry reacted against President Donald Trump’s surprise tweets Sunday threatening to hike to 25 percent the Section 301 tariffs currently at 10 percent on $200 billion in Chinese imports, effective this Friday. The uproar overshadowed industry’s response to Trump’s accompanying threat to impose 25 percent tariffs “shortly” on $325 billion more in Chinese goods previously “untaxed.” That would cover virtually all remaining imports to the U.S. from China.
International Trade Today is providing readers with some of the top stories for April 29 - May 3 in case they were missed.
While the Chinese have not levied tariffs on U.S. aircraft, the top manufactured good China imports from the U.S., that could change if President Donald Trump follows through on his May 5 threat to hike 10 percent tariffs to 25 percent, one expert believes. Edward Alden, a trade expert and professor at Western Washington University, said that the Chinese have been seriously negotiating for five months, and if the U.S. walks away, they will hunker down for a long, protracted trade war. They could levy tariffs on airplanes, increase customs hassles for those U.S. firms exporting goods to China and create geopolitical trouble for the U.S.
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, is now saying it's not his stubbornness on getting Mexican and Canadian retaliatory tariffs lifted that stands in the way of the Senate ratifying the new NAFTA. He said he's looking for "any way of moving ahead," but added, "let’s just assume that Chuck Grassley said that we ought to go ahead, regardless of whether the tariffs come off, it isn't going to happen. ... You're never going to get the 51 votes through the United States Senate" in that scenario, he said.
Industry reacted with shock, fear and fury to President Donald Trump’s surprise tweet Sunday hiking to 25 percent the Section 301 tariffs currently at 10 percent on $200 billion in Chinese imports, effective Friday (see 1905050002). Late Monday, U.S. Trade Representative Robert Lighthizer confirmed his office would put out a Federal Register notice Tuesday mandating that the tariff increase would take effect 12:01 a.m. Friday. It dashed the hopes of many who said they thought Trump might be bluffing as a negotiating tactic.