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

Pakistan and India face common threats, climate change is the biggest one

Collective action may just be what is needed to secure the lives and livelihoods of future generations. Climate change is no longer limited to books or scientific papers; it is a reality knocking on our doors. Longer, sweltering summers bringing in record-breaking heat to South Asia are just one example. The harshest of conditions have yet to come, and the entire region is woefully unprepared to meet the challenges. While they may seem isolated, increasing instances of extreme weather are harbingers of a major climate shift for South Asia. Unlike transnational challenges like security and trade, climate change cannot be deterred by conventional methods or unilateral initiatives. Instead, synchronised common action is the viable way forward for sustainable progress to mitigate the impacts of climate change. Let’s look at some of the common environmental challenges facing Pakistan


By Dawn
September 17, 2019

Economics

Japanese beef exports to U.S. set to expand

The total is due to exceed 2018’s record of 421 tons. Japan and the United States have agreed to scrap a 200-ton annual low-tariff quota for Japanese beef exports under a new bilateral trade agreement reached in principle, The Yomiuri Shimbun has learned. Under the agreement, Japanese beef would be subject to a different low-tariff quota, opening up the possibility of exports to the United States to expand significantly. With the popularity of Japanese beef in the United States rising amid a boom in Japanese cuisine, exports would be expected to increase further going forward. A low-tariff quota of 200 tons per year is currently in place for beef imported from Japan to the United States. A tariff of 4.4 U.S. cents (about ¥5) per kilogram is levied on exports within the quota. Depending on the price of beef, this can represent a tariff rate of


By The Japan News
September 16, 2019

Economics

South Korea and Japan have more in common than they think

Republished with permission for Asia News Network members by The Brookings Institution. With South Korea’s decision to scrap the 2016 military intelligence sharing agreement with Japan, the two sides have dramatically aggravated their fraught relationship. Bilateral ties had never been great, but in the past several weeks, a trade spat has snowballed into a confrontation that apparently has yet to reach rock bottom. Last month, Tokyo decided to remove South Korea from its list of favored trading partners, which includes the United States, Germany, France, and two dozen other countries, placing export curbs on industrial and high-tech p


By Asia News Network
September 16, 2019

Economics

Can Global Exchanges work?

Andrew Sheng for Asia News Network. HKEx’s (0388.HK) audacious $32 billion bid for London Stock Exchange Group (LSE.L) raised quite a few eyebrows on 9/11.   Three immediate questions were raised by the bid.   First, does the bid make sense for shareholders on a commercial basis?  Second, what are the strategic considerations for Hong Kong and global financial markets?  Third, what are the regulatory and geopolitical hurdles? My own policy is never to make any predictions on the prices or viability of any commercial deal but to let facts speak for themselves.   At present prices, HKEx is the third largest listed exchange in the world with a market cap of $40 billion, larger than the LSE ($31 billion) but smaller than the CME Group ($77 billion) and the Intercontinental Exchange Inc (ICE, $53 billion).   The fact that the LSE share price rose slightly after the bid announcement but remained lower th


By Asia News Network
September 16, 2019

Economics

The foreigner who stoked political chaos in Malaysia

For Asia News Network Editor’s Circle by Chong Lip Teck of Sin Chew Daily. Controversial Indian Muslim preacher Zakir Naik is on the wanted list in India due to his extreme religious remarks and alleged involvement in money laundering. Many Muslim countries have denied him entry. But in Malaysia, he is well received by the Pakatan Harapan (PH) government. Within the coalition, however, there is a split because of him. The ground sentiment is also divided into two, on  racial and religious lines. One side has defended him while the other side asked for his repatriation. As a Muslim preacher, Zakir Naik is popular in the Muslim community. He has his charm. While promoting Islam, he would  downgrade other religions, especially the Hindus and Christians. But, as a guest in Malaysia, he has crossed the red line. If he is merely promoting Islam, no one is against him. But he insults other religions in his sp


By ANN Members
September 16, 2019

Economics

Brussels must fight protectionism with Beijing: China Daily editorial

The article is an editorial from Chinese State Media. With the United States indiscriminately wielding the baton of trade protectionism, no country including its allies is immune to the toxic effects of the US’ policies. Therefore, it is a relief to see the incoming European Union leadership determined to buttress multilateralism and oppose US protectionism. Naming her 27-member team on Tuesday, Ursula von der Leyen, the European Commission’s president-elect, said: “I want the European Union to be the guardian of multilateralism. Because we know that we are stronger by doing together what we cannot do alone.” Such a stance, consistent with the outgoing EC’s leadership, is comforting in these times of unilateralism. It not only sends a positive signal to the world, including the EU’s partners, such as China, but also shows how the bloc can cope with the many challenges


By China Daily
September 13, 2019