Counterattack! China imposes tariffs on US$60 billion worth of goods.

  • Published:2019-05-15 05:51:12
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According to the latest announcement issued by the Customs Tariff Commission of the State Council,  on the May 9, 2019 the US government announced that the tariff rate for the $200 billion list of goods imported from China will be increased from 10% to 25% on May 10, 2019.

 

According to the "People's Republic of China Foreign Trade Law", "People's Republic of China Import and Export Tariff Regulations" and other laws and regulations and the basic principles of international law, approved by the Party Central Committee and the State Council, the State Council Tariff Commission decided: from 0:00 on June 1, 2019, For the part of the US$60 billion list of US goods that have been imposed with tariffs, increase the tariff rate and impose a tariff of 25%, 20% or 10% respectively. For tariff items that have previously been subject to a 5% tariff, 5% tariffs will continue to be imposed.

 

The Customs Tariff Commission of the State Council pointed out that China's adjustment of tariff-adding measures is a response to US unilateralism and trade protectionism. The Chinese side hopes that the US will return to the correct track of bilateral economic and trade consultations and work together with China to move toward each other and strive to reach a mutually beneficial and win-win agreement on the basis of mutual respect.

Last year, the Ministry of Commerce countered the US tariff on China's goods. At that time, it also imposed a tax rate of 25%, 20%, 10%, and 5%, but the negotiations between China and the United States were not implemented. The tense situation at that time brought a lot of influence to the semiconductor industry, especially the tariffs involved: tantalum capacitors, aluminum electrolytic capacitors, ceramic capacitors and other products originating in the United States.

The semiconductor projects involved in the tariff increase on US products have remained basically the same as last year. They are also based on various types of resistors and capacitors, including some diodes, inductors, relays, and semiconductor materials. The following is a selection of semiconductor and electronic products for the 25% and 20% tariffs on the US and Canada for reference.

In addition, according to the Nikkei News, the Trump administration of the United States announced on May 13 local time a detailed draft of the fourth round of punitive tariffs on all imported goods from China. The fourth round of taxation discussion is about all the remaining imports from China, worth $325 billion, of which smartphones and laptops are the heaviest products, and these two types of products may be subject to a 25% increase tariff.

According to the US Trade Representative Office (USTR) document, USTR will hold a public hearing on the list of the fourth round of tariffed goods on June 17. It is expected that this batch of tariffs will be officially started after the hearing. It should be noted that the products in the first three batches of exemption lists published by the United States are not included in the fourth round of tariffs.

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As a result, the Trump administration of the United States continues to forcibly launch an attack. As for what measures China will take next, how the situation of Sino-US trade develop? It deserves the continued attention of every IC person