China disputed the legality of the Section 232 tariffs on steel and aluminum at the World Trade Organization (see 1803260025), and now the U.S. is disputing both the characterization of those tariffs and how China has responded to them. The tariffs were for national security, and not to protect domestic industry from rising imports, asserted Deputy U.S. Trade Representative Dennis Shea, ambassador to the WTO. China's decision on April 2 to implement tariffs on pork, aluminum scrap and other U.S. exports were not justified, Shea wrote in a letter to China's WTO ambassador, since China can only use the safeguards to respond to safeguards, and the U.S. measures were not safeguards. "China has asserted no other justification for the measures, and the United States is aware of none," he wrote. "Therefore, it appears that China's actions have no basis under WTO rules."
The Office of the U.S. Trade Representative proposed tariffs on some $50 billion worth of Chinese imports, with an accompanying list including some tech and telecom-related products. "Sectors subject to the proposed tariffs include industries such as aerospace, information and communication technology, robotics, and machinery," the USTR announced. The tariffs likely wouldn't take effect before June as a result of the administrative process. A result of a Trade Act Section 301 investigation, the levies are meant as a response to a pattern of forced technology transfers, intellectual property theft and cyber business espionage. The Chinese ambassador to the U.S. warned Monday that China would likely retaliate with tariffs of similar scope in response to Section 301 tariffs. We couldn't reach anyone right away Tuesday at that country's embassy. Tech groups have opposed the U.S. move (see 1803220043). Comments are due May 11, and there is a May 15 USTR hearing, at 10 a.m. in the main hearing room of the International Trade Commission, 500 E St. SW.
The Office of the U.S. Trade Representative proposed tariffs on some $50 billion worth of Chinese imports, with an accompanying list including some tech and telecom-related products. "Sectors subject to the proposed tariffs include industries such as aerospace, information and communication technology, robotics, and machinery," the USTR announced. The tariffs likely wouldn't take effect before June as a result of the administrative process. A result of a Trade Act Section 301 investigation, the levies are meant as a response to a pattern of forced technology transfers, intellectual property theft and cyber business espionage. The Chinese ambassador to the U.S. warned Monday that China would likely retaliate with tariffs of similar scope in response to Section 301 tariffs. We couldn't reach anyone right away Tuesday at that country's embassy. Tech groups have opposed the U.S. move (see 1803220043). Comments are due May 11, and there is a May 15 USTR hearing, at 10 a.m. in the main hearing room of the International Trade Commission, 500 E St. SW.
The Office of the U.S. Trade Representative proposed tariffs on some $50 billion worth of Chinese imports, with an accompanying list including some tech and telecom-related products. "Sectors subject to the proposed tariffs include industries such as aerospace, information and communication technology, robotics, and machinery," the USTR announced. The tariffs likely wouldn't take effect before June as a result of the administrative process. A result of a Trade Act Section 301 investigation, the levies are meant as a response to a pattern of forced technology transfers, intellectual property theft and cyber business espionage. The Chinese ambassador to the U.S. warned Monday that China would likely retaliate with tariffs of similar scope in response to Section 301 tariffs. We couldn't reach anyone right away Tuesday at that country's embassy. Tech groups have opposed the U.S. move (see 1803220043). Comments are due May 11, and there is a May 15 USTR hearing, at 10 a.m. in the main hearing room of the International Trade Commission, 500 E St. SW.
A proposed new 25 percent tariff on imports from China appears to hit machinery, metals and trucks hard, with additional effects on pharmaceuticals, medical devices and optical equipment, according to a list of proposed tariff subheadings released by the U.S. Trade Representative on April 3 (see 1804030055). Other affected products include antifreeze, rubber tires and tubes, televisions, optical instruments and weapons. Comments on the list are due May 11.
Hours after the U.S. put out its draft list of tariffs on $50 billion worth of Chinese goods (see 1804030055), China said it may impose tariffs on $50 billion worth of U.S. imports, including certain narrow-body and corporate jets, cars, SUVs, soybeans, beef, wheat, whiskey and chemicals. Trade lawyers and lobbyists and China economic experts didn't agree on much, but most expect that a negotiated settlement will not be reached in time to stop the tariffs.
China will respond proportionately to any U.S. tariffs implemented as part of the Section 301 investigation, Chinese Ambassador Cui Tiankai said while speaking on an English-language Chinese television station on April 2. If the U.S. does add tariffs as a result of that investigation as expected, "we will certainly take countermeasures of the same proportion, and of the same scale, same intensity," he said. The White House said the total value of goods subject to levies will be $50 billion (see 1803220034). Cui emphasized that the latest tariffs on U.S. imports (see 1804020009) were solely in response to the tariffs on steel and aluminum.
The Office of the U.S. Trade Representative released a proposed list of tariffs on some $50 billion worth of Chinese imports. "Sectors subject to the proposed tariffs include industries such as aerospace, information and communication technology, robotics, and machinery," said the USTR in a news release.
Total U.S. soybean exports could fall by 40 percent if China imposes a 30 percent tariff in retaliation for U.S. tariffs, a new study from Purdue University agricultural economists says. The study, which was paid for by the U.S. Soybean Export Council, estimates that a tariff of that size would cut Chinese purchases of U.S. soybeans by 71 percent. More than 60 percent of U.S. soybean exports go to China. The economists also modeled the effect of a 10 percent tariff. In that case, total U.S. exports could fall by 18 percent, they estimated. Congress members from farm states have been anxious about China imposing retaliatory tariffs against soybeans, seen as a likely target, in response to Section 301 tariffs on China announced March 22 (see 1803220034).
The Office of the U.S. Trade Representative highlighted a handful of gains for U.S. exports in Japan, South Korea, Africa and South America while also highlighting irritants with China, India and Vietnam, in its annual National Trade Estimate Report. Aside from the lowering of trade barriers achieved in the rewritten U.S.-Korea Free Trade Agreement (KORUS), USTR noted that in January 2018, Japan recognized U.S. automobile safety standards for front and rear crashes, "thereby reducing the cost and burden for U.S. auto exporters." It also praised some anti-piracy actions in Peru and counterfeit seizures in Argentina. On the barriers side, the report again laid out the case against China that the Section 301 technology transfer enforcement action is based on. It also complained that India's price controls on knee implants and coronary stents, along with a refusal to allow U.S. companies to withdraw some products from the market, forces the U.S. to sell some products at a loss. "India has indicated it may apply similar price controls on additional medical devices."