IndustryNet
      

IndustryNet Blog

China tariff increase delayed as "substantial progress" made on trade, currency manipulation

Posted by IndustryNet on Tuesday, February 26, 2019

100000346_exports_freightPresident Trump said Sunday that the U.S. would be delaying the increase in tariffs on $250 billion of Chinese goods, originally scheduled to increase from 10% to 25% effective March 1st.

In two Tweets sent Sunday night, the President referenced “substantial progress” in the latest round of talks with Chinese President Xi Jinping.

So far, talks between the two nations have yielded a final agreement on China’s currency manipulation, the details of which are yet to be announced. China also recently agreed to buy 10 million metric tons of U.S. soybeans, a boon to U.S. farmers who have seen their exports hurt by retaliatory tariffs.

“I am pleased to report that the U.S. has made substantial progress in our trade talks with China on important structural issues including intellectual property protection, technology transfer, agriculture, services, currency, and many other issues,” tweeted the President. “As a result of these very......productive talks, I will be delaying the U.S. increase in tariffs now scheduled for March 1. Assuming both sides make additional progress, we will be planning a Summit for President Xi and myself, at Mar-a-Lago, to conclude an agreement. A very good weekend for U.S. & China!”

The USTR finalized tariffs on $200 billion of Chinese imports to the U.S. back in September 2018 in an effort to address unfair Chinese industrial policies. The finalized list represents roughly 50% of all Chinese goods imported to the U.S.

U.S. Trade Representative Robert Lighthizer had said in a statement released July 10th: “As a result of China’s retaliation and failure to change its practices, the President has ordered USTR to begin the process of imposing tariffs of 10 percent on an additional $200 billion of Chinese imports. This is an appropriate response under the authority of Section 301 to obtain the elimination of China’s harmful industrial policies.”

This is the second time implementation of the tariffs has been delayed.

The USTR’s initial plan was to impose a 10% import tariff September 24th 2018 on the list of nearly 6,000 Chinese products, with the remaining 15% implemented January 1st, 2019.

China then retaliated with its own list of import tariffs on $60 billion worth of U.S. goods at rates between 5-10%.

However, following a fruitful meeting at the trade summit in Buenos Aires in December, the U.S. and China agreed to delay the full implementation of their respective tariffs for 90 days until March 1st.

Challenges for manufacturers

Concerns over tariff action and fears of a trade war have clouded manufacturers’ optimism, even in light of a manufacturing sector that is well into expansion territory.

The ISM’s January report on U.S. manufacturing activity reveals that production, employment and new orders continue to surge. Yet tensions over upcoming tariff deadlines have dominated manufacturing executives’ concerns.

Uncertainty over the tariffs have caused prices to spike, with the ISM’s Prices Paid Index surging over the past several months.

A recent report by the Federal Reserve finds that overall U.S. businesses have shouldered the inflationary burden of ongoing tariff action, with prices rising 0.4% in direct relation to the tariffs now in place.Elderly woman works on auto assembly line

The report cautions that if tariffs were to rise to 25%, this could potentially lead to a 0.3% increase in consumer prices and a one percent increase in prices paid by businesses.

Although domestic suppliers of tariffed goods stand to benefit, manufacturers that rely on imports are concerned about supply disruptions and price hikes.

According to IndustrySelect’s database of 400,000 U.S. manufacturers, roughly 43,000 manufacturers in the U.S. rely on imports for the production of goods.

Many companies have applied for exemptions to the tariffs. Information on applying for an exemption can be found here. Others have turned to industrial marketplaces like IndustryNet to locate domestic suppliers of materials and goods.

List of products currently affected by tariffs

The number of Chinese products subject to the 10% tariffs encompasses a large range of Chinese imports, such as raw materials, industrial chemicals, tools and electronics.

That list full can be found here.

Finding domestic suppliers

IndustryNet maintains up-to-date information on over 400,000 U.S. manufacturers and suppliers of more than 10,000 products and services.

IndustryNet lists suppliers across a range of industries, producing everything from steel and aluminum to air compressorsconveyor belts and printed circuit boards.

Visitors can set up a free user account, build custom lists of potential suppliers, send quote requests, download catalogs, view company photo and video libraries, and more.

IndustryNet is also a direct path for U.S manufacturers to increase their visibility among domestic industrial procurers.

 

 

 

Want to keep up with the latest industrial procurement & sourcing trends and exclusive statistics from MNI? Industry professionals trust the free weekly IndustryNet Insider email as their go-to source for industrial news & statistics you can't find anywhere else. Subscribe here.




Get 500 FREE
Industrial Leads from
IndustrySelect!
Reach U.S. manufacturers, suppliers, and industrial service providers with B2B company data
IndustrySelect
Researched firsthand by real people for unparalleled accuracy and detail, trusted by over 50,000 professionals at small businesses to Fortune 500 companies
IndustrySelect is the Industrial Database
Sales • Marketing • Recruiting • Research
Check  Identify prospects by location, industry, size
Check  View complete company profiles
Check  Executive contact data with direct emails
Check  Get instant counts, build unlimited lists
Check  Export profiles to your CRM
Check  Locate top executives by name & title
Check  Collaborate with your sales team
Check  See parent company and family tree
Check  Discover a company's key competitors
Check  Uncover hidden prospects with Intent Data
Check  Clone your best customers Customer Match
Check  Pricing levels for all budgets
Check  Use on your PC, Mac, tablet, or smartphone
Get 500 FREE demo leads now!
A service of MNI
 Find a Supplier  About IndustryNet  Contact IndustryNet We Help Industrial Suppliers Grow:
 Get a Quote  Buyer Reviews  Link to IndustryNet
 IndustryNet Blog  Marketing Solutions  Terms of Use  B2B Industrial Prospecting Data
 Create Free Account  Add or Upgrade Listing  Legal Information  Industrial Prospecting Services
 Account Log In  Browse All Categories  Privacy Policy  Industrial Project Reports
 ISO Standards & Certifications  Browse All Companies  Do Not Sell My Personal Info  Advertise on IndustryNet