A group of 80 trade associations has asked for exclusions to Section 301 Chinese tariffs to be liberally granted, including that they be granted automatically to all importers who have a "binding 'signed purchase order' to procure products from a supplier in China" if that order was signed before July 6.

Tech startups are among the many hundreds of innovators from various industries voicing opposition to a third proposed tranche of 25 percent Trade Act Section 301 tariffs on Chinese imports (see 1808010018), comments in docket USTR-2016-0026 show.

Tech startups are among the many hundreds of innovators from various industries voicing opposition to a third proposed tranche of 25 percent Section 301 tariffs on Chinese imports (see 1808150002), comments in docket USTR-2016-0026 show. One such startup, Cao Gadgets, worries about the impact tariffs will have on its “family owned small business,” which develops wireless sensor tags for a variety of Internet of Things uses, commented owner Mike Cao. Four days of public hearings are to begin Aug. 20 on the proposed third tranche. Final comments in the docket are due Sept. 6.

July retail sales increased 0.4 percent sequentially from June and 4.9 percent year over year, “as consumers continued to spend despite concerns about the growing trade war,” said the National Retail Federation Wednesday. Consumer spending is the “backbone of the current economic expansion,” but “uncertainty” over the Trade Act Section 301 tariffs on Chinese imports is the potential “fly in the ointment,” said NRF: “If they escalate, they will no doubt weigh on confidence and household spending.” Retail sales at electronics and appliance stores were up 4.2 percent year over year in July, 0.1 percent sequentially from June, said NRF. Overall online sales were up 11.3 percent year-over-year and 0.8 sequentially, it said. NRF upgraded its 2018 retail sales forecast Monday, despite tariffs remaining a big worry (see 1808130009).

Special tariff provisions for U.S. goods returned after assembly, repair, alterations and processing will soon become subject to Section 301 tariffs on China, the Office of the U.S. Trade Representative said in a notice published Aug. 16. Products on the tariff list properly claimed under Chapter 98 provisions have up to now been fully exempt from the 25 percent duty, but beginning 12:01 a.m. on Aug. 23, subheadings 9802.00.40, 9802.00.50, 9802.00.60 and 9802.00.80 will no longer be eligible for the carve-out if classified under a Chapter 1-97 tariff provision otherwise covered by the tariffs.

Cree estimates that the first tranche of 25 percent Trade Act Section 301 tariffs on Chinese imports that took effect July 6 will reduce its earnings by about 2 cents a share in Q1 ending late September and by about 3 cents a share each future quarter starting Q2, said Chief Financial Officer Mike McDevitt on a Tuesday earnings call.

Hundreds of companies -- the vast majority in opposition to new duties on goods from China -- asked to testify during four days of hearings beginning Aug. 20 on the proposed third tranche of Section 301 tariffs on an estimated $200 billion worth of Chinese imports. Requests were due Aug. 13 in docket USTR-2018-0026 under the deadline U.S. Trade Representative Robert Lighthizer extended from July 27 when he announced Aug. 1 he will “consider,” at President Donald Trump’s direction, raising the third tranche of proposed duties to 25 percent from 10 percent. Lighthizer in an Aug. 7 notice said he reserves the option to “extend the length of the hearing depending on the number of additional interested persons who request to appear.”

Micro Electronics and GlobiTech were among the tech interests joining many hundreds of companies -- the vast majority in opposition to the duties -- asking to testify during four days of hearings beginning Aug. 20 on the proposed third tranche of Trade Act Section 301 tariffs on an estimated $200 billion worth of Chinese imports.

The proposed third tranche of 25 percent Trade Act Section 301 tariffs on Chinese imports targets equipment “critical for the build-out” of 5G, IoT and “big data,” says K.C. Swanson, Telecommunications Industry Association director-global policy, in prehearing testimony posted Monday in docket USTR-2018-0026. Swanson is scheduled to testify Aug. 21, day two of four days of Office of U.S. Trade Representative hearings. Requests to testify were due Monday under the deadline USTR Robert Lighthizer extended when announcing Aug. 1 he will “consider,” under President Donald Trump’s direction, raising the third tranche of proposed duties to 25 percent from 10 percent (see 1808010073). The “network-based technologies” in which U.S. companies lead the world “depend on underlying hardware,” said Swanson. “Taxing that hardware,” as tariffs on network servers, gateways and modems would do, will raise costs for consumers, she writes: That "stands to discourage U.S. adoption of advanced technologies in a period of growing global competition.” Duties "will hit so many of the telecom products essential to the operation of the internet,” Swanson says. More than 10 million Americans use the computer networking products Zyxel Communications sources from China under certain tariffs hearings for home internet access and for “network computers in the workplace,” commented the company. Its largest customers include CenturyLink, Cincinnati Bell and Hawaiian Telecom, it said. Zyxel’s router products “are used to proliferate broadband throughout the U.S.,” it said. With 34 million Americans lacking "an affordable and reliable broadband connection,” government levies would run counter to DCC and other broadband initiatives, the company said.

The National Retail Federation upgraded its 2018 retail forecast, for sales to increase 4.5 percent “at a minimum” over 2017, it said Monday. NRF’s February forecast was 3.8-4.4 percent. “Tax reform and economic stimulus have created jobs and put more money in consumers’ pockets, and retailers are seeing it in their bottom line,” said NRF President Matthew Shay. “We knew this would be a good year, but the first half turned out to be even better than expected,” when retail sales increased 4.8 percent from a year earlier, he said. Trade Act Section 301 tariffs on Chinese imports remain a big worry, and “we don’t want to see these economic gains derailed by protectionist trade policy,” said Shay. “With retailers ramping up imports and stocking their warehouses before most of the proposed tariffs will take effect, an immediate impact on prices on consumer goods is unlikely, but that won’t last for long.” NRF fears “mere talk of tariffs negatively impacts consumer and business confidence, leading to a decline in spending,” he said. “Replace tariffs and talk of trade wars with diplomacy and policies that strengthen recent gains.” Tariffs of 25 percent on $34 billion worth of Chinese goods took effect July 6, and are scheduled to take effect Aug. 23 on another $16 billion, said NRF. Those first and second tranches affected "a relatively low number of consumer products," but the third on $200 billion "would include a broader array of consumer items," and is "expected to be finalized in September," it said.