See More on Facebook

Economics

US business leaders cry foul over tariffs

China’s role in production stressed as public hearing starts on tariffs.


Written by

Updated: August 23, 2018

 

One executive displayed a pink helmet that she said would be increasingly unavailable if tariffs were raised, while another said: “Help me keep my company alive.”

Representatives from a broad cross-section of United States’ businesses and industrial groups began to voice their concerns on Monday, the first of six days of public hearings on the impact of a fresh round of tariffs on Chinese products.

Many said that hefty duties harm US consumers, workers and businesses as well as the economy.

US President Donald Trump has directed the US trade representative to consider increasing the additional duty from 10 percent to 25 percent on $200 billion worth of Chinese imports, targeting thousands of consumer products ranging from chemicals to cosmetics.

The tariffs would be the same as those the US has already imposed on $34 billion in Chinese goods, and on another $16 billion to be activated on Thursday.

A Chinese delegation led by Vice-Minister of Commerce Wang Shouwen will visit the US this week to talk with his counterpart on bilateral economic and trade issues.

Foreign Ministry spokesman Lu Kang said on Tuesday that China hopes the talks with the US “reach a good result” on the basis of equality and good credibility.

Many executives testified on Monday that production of the targeted Chinese imports could not feasibly shift to the US.

Ross Bishop, president of BrightLine Bags, whose products are manufactured in China, said: “We’ve made three specific and concerted attempts to get our bags made in the US and have learned from each instance that our costs would triple compared to what we pay now, and the detailed quality isn’t as good.”

Already paying 17.6 percent duties, an additional 25 percent would bring the total to “an absurd level of 42.6 percent”, which has the “undeniable potential” to cripple his company, he said.

The actions taken by the Trump administration do not represent the will and interests of the US people or companies, but serve their own political purpose, said Shen Jianguang, chief economist at JD Finance.

“The actions keep neglecting the fact that many products manufactured in China such as semiconductors, smartphones and construction machinery are invested in and operated by US companies.”

The Beijing-based China Chamber of Commerce for Import and Export of Machinery and Electronic Products urged the US government to remove products such as refrigerators from the proposed tariff list, as they easily affect daily lives in the US.

Xue Rongjiu, deputy director of the China Society for WTO Studies, said China’s foreign trade has great resilience, and the country has already begun to further stimulate domestic consumption and diversify its exports to minimize impact from the China-US trade dispute.

Joseph Cohen, CEO of Snow Joe LLC, said “significant harm” would be inflicted on US consumers and businesses without advancing the US administration’s goal if a 25 percent or even 10 percent tariff were imposed on various consumer products offered by his company.

Thomas Cove, president and CEO of the Sports & Fitness Industry Association, said China remains a “vital and not easily replaceable link” in the industry’s supply chain.



Enjoyed this story? Share it.


China Daily
About the Author: China Daily covers domestic and world news through nine print editions and digital media worldwide.

Eastern Briefings

All you need to know about Asia


Our Eastern Briefings Newsletter presents curated stories from 22 Asian newspapers from South, Southeast and Northeast Asia.

Sign up and stay updated with the latest news.



By providing us with your email address, you agree to our Privacy Policy and Terms of Service.

View Today's Newsletter Here

Economics

Taiwan becomes first Asian country to legalize same-sex marriage

The legislation was passed on Friday. Taiwan made history on May 17 as the first country in Asia to legalize same-sex marriage, after most lawmakers of the ruling Democratic Progressive Party (DPP) voted to pass a Cabinet-sponsored bill that gives gay couples the right to get married. The bill, titled Enforcement Act of Judicial Yuan Interpretation No. 748, cleared the legislative floor at 3:30 p.m. on Friday. The new law will take effect May 24, allowing two persons of the same gender, aged 18 or older, to register a marriage, with at least two witnesses signing the registration document. Either partner in the marriage will be allowed to adopt the biological children of the other, under the law. However, non-biological children who had been adopted by one partner before the marriage cannot be adopted by the other partner, it states. The New Power Party (NPP) caucus had submitted a motion


By ANN Members
May 19, 2019

Economics

Bangladeshis will be richer than Indians by 2030

This according to a new report by Standard Chartered bank. Bangladeshis will be richer than Indians by 2030 as the country’s per capita income will grow nearly four times throughout the 2020s, according to Standard Chartered — in yet another endorsement of its tremendous growth momentum. The per capita income of Bangladesh will rise to $5,734.6 in 2030. India’s will edge up to $5,423.4 after growing less than three times, according to a research note from Madhur Jha, Standard Chartered India’s head of thematic research, and David Mann, the bank’s global chief economist. Last year, Bangladesh’s per capita income stood at $1,599.8 and India’s $1,913.2. The note highlights the economies around the world that are likely to grow the fastest in the 2020s. The threshold for the list is 7 percent, the approximate growth rate at which an economy can double in size every 10 years.


By Daily Star
May 17, 2019

Economics

Jobless rate hits 19-year high in Korea

Rate rises on back of youth unemployment. South Korea’s job market prolonged its downswing in April, with unemployment reaching its highest point in 19 years, government data showed Wednesday. The increasing pace of job creation also slowed further, especially in the retail and manufacturing sectors and among the economically active 30-40 age group. According to job figures released by Statistics Korea, the total number of jobless people surpassed 1.24 million as of April for the first time since the government started compiling the data in June 1999. The jobless rate stood at 4.4 percent, up 0.3 percentage point from a year earlier and marking the highest for any April since 2000, when Asia’s fourth-largest economy was reeling under the aftermaths of the Asian Financial Crisis. The jobless rate for young adults — those aged between 15 and 29 — also rose to a record-high 11


By The Korea Herald
May 16, 2019

Economics

Beijing stresses equality in trade talks with Washington

World market confidence dampened by escalation, Chinese state media says. Consultations between China and the United States are not a one-way street, and should be conducted amid a spirit of equality, State Councilor and Foreign Minister Wang Yi said on Monday in Russia. Wang said that it is pointless for one side to blame the other, or even to absolve themselves from responsibility. Wang stressed if one side is trying to place extreme pressure on the other, it will cause a legitimate counterattack. “The measures from us are not only to safeguard China’s own rights, but to protect the basic rules of the current multilateral trading mechanism,” Wang said. Wang made the remark in a joint news conference with his Russian counterpart Sergei Lavrov during his visit to the Black Sea coastal city of Sochi. Experts warned that the rising US tariffs on Ch


By China Daily
May 16, 2019

Economics

South Korea jobless rate rises to 4.4% in April

Weak job markets and uncertain macroeconomics have contributed to increased unemployment. South Korea’s jobless rate rose to 4.4 percent in April, government data showed Wednesday, in the latest sign of a weak job market amid an economic slowdown in Asia’s fourth-largest economy. The unemployment rate increased 0.3 percentage point from a year earlier, according to the data compiled by Statistics Korea. It also marked the highest level for any April since 2000, when the corresponding figure stood at 4.5 percent. The number of employed people reached 27.03 million in April, an increase of 171,000 from the same month in 2018.


By The Korea Herald
May 15, 2019

Economics

Beijing vows retaliation on US trade

Ministry expresses ‘deep regrets’ in wake of added tariffs on Chinese goods. The Ministry of Commerce expressed “deep regrets” on Friday at the United States’ move to impose additional tariffs on Chinese imports and vowed to take necessary countermeasures. The comments came shortly after the US increased the rate of additional duties on $200 billion worth of Chinese imports from 10 percent to 25 percent, a move that economists said amounts to “typical trade bullying” that will backfire to hurt its own interests. The commerce ministry said in a statement that the 11th round of China-US high-level economic and trade consultations are underway, and China hopes the two sides can work together to resolve existing issues cooperatively. Foreign Ministry spokesman Geng Shuang said at a daily news briefing that a healthy and stable Sino-US relationship serves the


By China Daily
May 13, 2019