China plans to hit a wide range of goods from the U.S. with 10 percent tariffs in response to the Trump administration's most recent proposed tariffs on Chinese goods (see 1808030013) Among the major items by value targeted by the Chinese on its 10 percent tariff list are food preparations in 2106.90.90, lasers other than laser diodes in 9013.20.00, and cast glass sheets in 7003.19.00, according to International Trade Centre data cited in a tweet.
In a series of tweets before a campaign rally in suburban Columbus, Ohio, and again on Aug. 5, President Donald Trump said tariffs "are working big time," and "foolish people scream" when his government imposes them. He said because of tariffs, America is winning, and China is "doing poorly against us" for the first time, and other countries' economies are hurting, too. Trump's preferred metric, the trade deficit, is still growing, through June and is up 7 percent compared to the first half of 2017. He said China is spending a fortune trying to convince "our politicians to fight me on tariffs."
China plans to hit a wide range of goods from the U.S. with 20 percent tariffs in response to the Trump administration's most recent proposed tariffs on Chinese goods (see 1808030013) Among the major items by value targeted by the Chinese on its 20 percent tariff list are machines and mechanical appliances in 8479.89.99, parts of diodes, transistors and similar semiconductor devices in 8541.90.00, other optical instruments in 9031.49.90 and North American hardwood in 4403.99.60, according to International Trade Centre data cited in a tweet.
The Coalition for a Prosperous America, whose chairman is Donald Trump ally Dan DiMicco, said the president should consider vetoing the Miscellaneous Tariff Bill, the group said in a news release. The Senate unanimously last month (see 1807270003) and passed the House of Representatives 402-0 before that (see 1801170012). The MTB "has flown beneath the radar and is a holdover from the past," said DiMicco, who was a trade adviser to Trump during his presidential campaign, and is a former CEO of steel producer Nucor. "At precisely the moment when the president is tackling foreign trade cheating and trying to create leverage, Congress is again engaging in unilateral trade disarmament. This bill fails to consider that many of the products included could be manufactured in the US.”
Tariffs "show up as a tax on the consumer and wind up resulting in lower economic growth” that can sometimes bring about "significant risk of unintended consequences,” Apple CEO Tim Cook said in Q&A on the company’s quarterly earnings call on July 31. Several trade agreements “are in need of modernizing,” but in most situations, “tariffs are not the approach to doing that,” Cook said. Risks of macroeconomic issues such as an economic slowdown or currency fluctuations related to tariffs are difficult to quantify, “and we're not even trying to,” Cook said. None of Apple’s products was affected by the U.S. tariff on steel and aluminum, which took effect in June, nor two other Section 301 lists totaling about $50 billion in goods from China that were implemented.
Mexico's economy minister is meeting with U.S. Trade Representative Robert Lighthizer on Aug. 2, and analysts watching the renewed momentum between Mexico and the U.S. in NAFTA discussions see competing pressures on negotiators. On one side is the need to show results for its tariff hikes, on the other is a deep skepticism of trade deals, the observers said. A source close to the negotiations said Mexico and the U.S. are getting closer on reaching a deal on auto rules of origin -- and that Mexico appreciates the other areas where the U.S. is showing more flexibility.
As critics continue ratcheting up their opposition to the Trump administration’s proposed third round of Section 301 tariffs on $200 billion in Chinese imports, it remains to be seen how the Office of the U.S. Trade Representative will accommodate all who have requested to testify in five-minute slots during four days of public hearings scheduled to begin Aug. 20. Well more than 300 people in various industries filed requests in docket USTR-2018-0026 by the July 27 deadline to appear at the hearings, virtually all of them to say they'll testify against the tariffs.
Two Republicans and one Democrat introduced a bill in the Senate Aug. 1 that would stop a Section 232 tariff if majorities in both chambers don't want the tariff. Sen. Rob Portman, a former U.S. trade representative, is the author of the bill, co-sponsored by Sen. Joni Ernst, R-Iowa, and Sen. Doug Jones, D-Ala. Portman had been working for weeks to sign up co-sponsors (see 1807130019).
The Office of the U.S. Trade Representative has been directed to consider levying a 25 percent tariff on $200 billion worth of Chinese imports, according to senior administration officials who spoke with reporters Aug. 1. Because of the potential change in policy, parties will have an extension on filing requests to appear at the Aug. 20 hearing -- they now have until Aug. 13 -- and the comment period will be extended six days, to Sept. 5. "Obviously no final decision has been made" on the tariff rate, an official said. The USTR previously proposed a 10 percent tariff on the goods (see 1807110050).
Rwandan apparel won't be eligible for African Growth and Opportunity Act benefits as of July 31, the White House announced July 30, because Rwanda continues to block imports of used clothing from the West. Some African countries feel that very cheap used clothing has undermined their domestic clothing manufacturers. The imposition of tariffs on Rwandan apparel was first announced in March but did not take effect immediately (see 1803290034).