Three months ago, U.S. President Biden stated in a high-profile manner that he was considering lifting some of the tariffs imposed on Chinese products exported to the United States during Trump’s term in order to alleviate the soaring inflation rate in the United States. However, after Pelosi moved to Taiwan and China implemented countermeasures against the United States, the Biden administration intends to reconsider the issue of tariffs against China. Recently, US Commerce Secretary Raimondo said in an interview with US media that Pelosi’s move to Taiwan “has made the situation particularly complicated” and that Biden is now taking a “cautious attitude” towards the issue of tariffs on China. In the original plan, in order to alleviate the high domestic inflation level, the Biden administration has been considering canceling some tariffs on China to ease the pressure. Before Pelosi’s visit, the preliminary tariff elimination policy on US$370 billion of Chinese exports was being prepared. Implemented, the initial policy covers approximately $10 billion worth of goods.
Tariff issues are getting complicated
U.S. Commerce Secretary Raimondo said that the tension caused by Pelosi’s visit to Taiwan has made the issue of “reducing tariffs on some Chinese goods exported to the United States” “particularly complicated.” Raimondo noted that Pelosi’s actions make things more challenging. She said she hopes to overcome the current difficulties and move back to a place where more discussions can take place. She also revealed that Biden is considering the matter and that they have recently discussed the issue. Raimondo believes Biden will make a decision soon and it won’t take long. However, Reuters cited exclusive sources as saying that the Biden administration is actually planning to put the matter on hold temporarily. Affected by Pelosi’s change of office, they now do not want to take any measures to escalate the situation, but at the same time they do not want to show concessions. However, the White House still has not acknowledged this statement. White House spokesperson Saloni Sharma said: “The president has not made a decision yet. Nothing has been shelved or suspended, and all options are on the table. The only way to The person who makes the decision is the president, and he will make the decision based on our interests.”
News reports from Bloomberg
In response, Chinese Foreign Ministry spokesperson Wang Wenbin said: There are no winners in a trade war. The early lifting of tariffs by the United States will be beneficial to the United States, China, and the world. Moreover, under the current situation across the Taiwan Strait, the rights and wrongs of China and the United States are very clear. The United States should not It is expected that China will use its core interests to make deals, but it should return to the political foundation of Sino-US relations!
Specific tariff list details
The reporter learned that the current tariffs imposed on three batches of goods, including the original US$34 billion (List 1), US$16 billion (List 2) and US$200 billion (List 3), will expire in the second half of this year. The additional tariffs on goods worth US$100 million (List 4) will expire in September next year. If the cancellation of additional tariffs can be implemented smoothly, the competitiveness of my country’s exports is expected to increase, and the growth rate of exports to the United States will be boosted.
Since the United States imposed additional tariffs on Chinese exports included in List 1 in 2018, the growth rate of China’s exports to the United States has experienced a relatively significant decline. It was not until the outbreak of the new crown epidemic that my country’s export growth rate to the United States gradually returned to the level of the trade dispute. previous level. If the cancellation of additional tariffs can be implemented smoothly, the competitiveness of my country’s exports is expected to increase, and the growth rate of exports to the United States is likely to be boosted. Judging from the time sequence of the cancellation of additional tariffs, the mechanical and electrical industry may be the first to benefit. If all additional tariffs are canceled when they expire, Lists 1 and 2 that have expired in recent months will push the actual tariff rate down by about 2.6 percentage points. List 3, which will expire at the end of September, has the most widespread impact. Except for the textile and clothing industry, the cancellation of the additional tariffs in List 3 may drive the actual tariff rate of various industries to fall by more than 5 percentage points. The impact of tariffs on List 4, which will expire in September next year, is mainly concentrated in the textile and clothing industry.
U.S. footwear prices rise to record highs!
This year, as the inflation problem in the U.S. market has become increasingly apparent, the prices of footwear products in the market have also risen. In the past July, although the inflation phenomenon has eased at the macro level, the price of footwear products has also increased. Prices are still rising significantly, with footwear prices rising 6.2% in July compared with last year, according to the latest data from the Footwear Distributors and Retailers of America (FDRA). Last month, men’s shoes increased by 4.9%, women’s shoes increased by 6.4%, and children’s shoes increased by 7.7%. The FDRA said footwear prices in the first seven months of this year rose 5.8% compared with the same period last year, the fastest rate of increase in recent decades.
The FDRA and other industry groups have been working to pressure the U.S. government to lift onerous tariffs on goods, mainly from China, that have been a major factor in soaring shoe prices. As early as October last year, FDRA wrote to President Biden to “ask for help”, stating that the price of children’s shoes in the United States has risen to the highest level in more than 70 years. FDRA believes that the “hands behind” the rise in children’s shoe prices are shortages in the U.S. supply chain and the The country has high import tariffs. The organization emphasizes that among all commodities, children’s shoes areExport tariffs are at a high level. It is reported that the general starting import tariff for children’s shoes in the United States is 20% or 37.5%, and the highest can reach 70%. Driven by the two “black hands”, the country’s shoe companies can only transfer cost pressures to commodity prices. Therefore, the organization requests Biden to cancel 301 tariffs on children’s shoes.
Recently, Steve Lama, president and CEO of the American Apparel and Footwear Association, continued: “Footwear product prices are rising at an alarming rate, and it is clear that these tariff-driven inflations are dragging down American families and the U.S. economy.” FDRA President and CEO Matt Prist also said: “Today’s inflationary issues are having a devastating impact on footwear consumers across the country, and time is running out to discuss the elimination of footwear import tariffs.”