Apparently, China is waffling on prior commitments in the trade negotiations, so President Trump announced that effective 12:01 AM this Friday May 10, import duties on the "List 3" would return to 25% (from the current 10%). Will this actually happen, or will China convince the President that it is serious, in time for him to rescind this increase? Only one person knows the answer.
PLUS
, the President has announced tariffs will be imposed on a new "List 4" covering $325 billion of imports from China – which means virtually everything else we import from China that has not already been hit with tariffs on the "Lists 1, 2 and 3", meaning footwear, apparel, toys, consumer electronics. These would hit US consumers harder than any of the tariffs previously imposed. And hit Chinese production that has been shifting to other Asia countries. This could accelerate that shift. Will it work to leverage Chinese negotiators? Will he do it? One presumes, that is what he wishes the Chinese to wonder.
What will China do now? Make concessions on intellectual property, bad trade practices, subsidies, etc. demanded by the US? Wait to see if Trump really will impose these new tariffs? Retaliate again, but how -- by finding other US exports (aircraft) to penalize? By further increasing existing punitive tariffs on US exports? By imposing non-tariff barriers vs US exports?
What can you do?
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Peter
Peter Friedmann
CONECT - Coalition of New England Companies for Trade
1120 G Street, NW, Suite 1020 Washington, D.C. 20005
202-783-3333
