The United States intends to re-exempt 549 categories of imported goods from China, US companies: should be exempted more | Blog Post

After the Biden administration came to power, it has been comprehensively assessing the policies of the Trump era in its economic and trade relations with China. They believe that the Biden administration still retains the practice of imposing tariffs on Chinese goods during the Trump era, which not only adds to the expenditure burden on Americans, but also makes it impossible for them to find substitutes for Chinese products on a global scale.

Dai Qi, the US Trade Representative.Profile picture

US Trade Representative Dai Qi had earlier made a concession before the video dialogue with Chinese Vice Premier Liu He. She explained the Biden administration’s trade policy towards China at the Center for Strategic and International Studies of the US Think Tank, emphasizing that the US “has no intention of intensifying trade tensions with China. “The Situation” will initiate a “targeted tariff exclusion procedure” to exempt some of the tariffs imposed by the Trump administration on China’s US$370 billion products.

According to a report from the “Wall Street Journal” on the 13th, the range of US companies complaining about tariffs is wide, ranging from companies that rely on Chinese electronic components to retailers who import clothing from China. The person in charge of a Colorado equipment supplier that mainly sells camping products made in China said that importing these products from China must pay a tariff of up to 25%. This not only greatly reduces the profit margin of the company, but also causes him to use personal funds to pay. These additional tariffs. He believes that imposing tariffs will only increase the burden on Americans. “Either small businesses will bear these tariffs as I am now, or they will be passed on to consumers and consumers will pay for them.”

The Office of the United States Trade Representative recently proposed to re-exempt 549 categories of Chinese imports from tariffs and consult the public on this. However, the Wall Street Journal believes that this is only about a quarter of the more than 2,200 products eligible for tariff exemption during the Trump era, and many products whose exemptions have expired are not included in these 549 products.

Some industry organizations hope that the Biden administration can expand the exemption program. The head of the American Apparel and Footwear Association said, “It is disappointing that many products are not covered by the exemption.” Ken Monaghan, vice chairman of the National Association of Manufacturers, said, “Manufacturers want to see more opportunities to apply for tariff reductions. It’s not just those exemptions that expire and postpone.”

The tariff exemption procedures implemented by the Trump administration in 2018 have caused a lot of complaints. Feedback received by the Office of the United States Trade Representative shows that a large number of companies complain that these procedures are cumbersome and opaque. They can’t understand the information that the Office of the United States Trade Representative really wants to evaluate, and they are not sure about the best way to apply. They can only wait in a daze. Some applications were approved and some were rejected, but the Office of the United States Trade Representative did not provide any explanation.

Since then, the US government regulatory agency launched an investigation into this set of exemption procedures, and in a report issued in July this year, it pointed out the problems in the implementation of the Office of the United States Trade Representative: not only the procedures are incomplete, but also the basis for the implementation of many steps in the review is inconsistent. . This report shows that from 2018 to 2020, US companies have submitted about 53,000 tariff exemption applications, but 46,000 of them have been rejected.

U.S. companies further complained that some of the additional tariffs imposed on Chinese goods actually harmed the interests of U.S. companies. For example, a certain product from China used by a US company in the supply chain is subject to tariffs, while products manufactured by Chinese companies using the same product are exempt from tariffs. This makes it impossible for US companies to compete with China in price.

The Office of the United States Trade Representative previously stated that it will open a 50-day consultation period on Tuesday to evaluate requests for tariff exemptions.

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