On the 17th, local time, the Office of the US Trade Representative (USTR) announced three notifications for the removal of tariffs on goods from China, and more than 400 items were exempt from tariffs. Different from previous times, this list refers to the three batches of Chinese goods declared by the US to impose tariffs.
According to the first financial reporter, the tariff exclusion list involves a total of 437 items, and the excluded items are mainly various types of equipment, organic synthetic materials, daily necessities, chemicals, textiles, mechanical and electrical equipment, chemical products, steel products, etc. These commodities are distributed among the three batches of Chinese goods that have been imposed on tariffs, which were announced by the United States last year, of $34 billion, $16 billion, and $200 billion.
From December 28, 2018 to the present, USTR has published 11 batches of commodity exclusion lists. According to the first financial reporter’s enquiry, 984, 87, 21, 515, 464, 110, 69 and 10 items were excluded in the first 8 times. On September 17, USTR announced a three-batch exclusion list for each of the three batches of goods mentioned above, which has never happened before.
The USTR stated in the notice of the $34 billion exclusion list for tariffed goods. On September 17, 2019, USTR issued Notice No. 3290-F9 to announce the goods subject to tariff exclusion. According to Section 301 b of the US Trade Act of 1974, Sections 301 c and 307 a, and the recommendations of the Inter-Agency Committee on Article 301, the US Trade Representative announced the removal of tariffs on 310 of these commodities. The statement said that the decision also referred to the “advice and opinions of the advisory committee and the public on the relevant tariff exclusion products.”
These 310 products are mainly for various types of electromechanical instruments, equipment and components, including pump turbines, electric equipment, engines, lifting equipment, medical equipment and optical equipment of different types and uses.
And this time included in the $16 billion list of tariff-exempted goods, including PVC rolls, PVC sheets, plastic tubes, pipe and hose joints and connectors, spherical knob steel, iron or steel 89 types of products such as terraces, pergola and scaffolding, galvanized steel pipes, and rotary internal combustion engines for agricultural or horticultural machinery.
In addition, 38 categories of commodities, such as daily necessities, chemicals, textiles, and electromechanical equipment, were included in the $200 billion list of tariff-exempted commodities. Among them, about one-third of daily necessities include LED lamps that are closely related to the daily lives of Americans, lighting accessories for gardens, courtyards and desktops, composite wood flooring, water cups for coffee brewing and self-contained filter devices, and portable Single-use grills, dog seat belts, etc.
The American Chemistry Council (ACC) issued a statement opposing the Trump administration’s plan to impose tariffs on Chinese goods. The statement said that although the US imports of chemicals from China increased by 22.7% in 2018, retaliatory tariffs inhibited US exports of Chinese chemicals, resulting in a two-fold increase in the trade deficit of chemicals against China in 2018, from 1.4 billion. The dollar has increased to $4 billion. The US chemical industry is the main export industry of the United States, accounting for more than 10% of the total US export trade.
Christmas goods in the column
The refreshing of the tariff exclusion list is beneficial to Chinese exporters, US importers and US consumers.
The good news for American consumers who are going to spend Christmas is that a small lighting fixture for Christmas tree decorations is also on the exclusion list.
According to a survey released by the Peterson Institute for International Economics in the United States, Christmas supplies and Christmas lights ranked third and tenth respectively in the TOP10 of the “Made in China” products consumed by Americans.
According to data from the US Census Bureau, 80% of imported lighting in the United States is completed in August and October each year, and Chinese goods account for about 85% of these imported lighting fixtures, and almost all LED lights Americans used are from China.
Among the textiles, 100% polyester woven microfiber fabrics and polyester products are also included in this exclusion list.
According to data from the China Chamber of Commerce for Import and Export of Textiles, China’s textile and apparel exports to the United States last year were about 10.3 billion U.S. dollars, accounting for about 16% of China’s exports of textiles, clothing and raw materials to the United States, and about 17,000 export enterprises.
Rufus Yerxa, president of the US National Foreign Trade Council, said that the United States no longer has the infrastructure to produce clothing, textiles and other related products.
For the US textile industry, the “lifting the ban” on Chinese textiles has at least eased the urgent need.
Industry insiders in various fields said that the announcement of this exclusion list is also good news for export companies in related fields in China, especially those companies that are currently striving for Christmas orders.