Walmart warns Trump tariffs may force price hikes: The Hillw


September 21, 2018 / 8:09

(Reuters) – Walmart Inc (WMT.N) has issued a warning in a letter to U.S. Trade Representative Robert Lighthizer that it may have to raise prices due to tariffs on Chinese imports, CNN Money reported.

“The immediate impact will be to raise prices on consumers and tax American business and manufacturers,” Walmart said, according to the CNN Money report.

U.S. President Donald Trump said on Monday that he would impose 10 percent U.S. tariffs on about $200 billion worth of Chinese imports.

Walmart was not immediately available to comment outside business hours.

Reporting by Rishika Chatterjee in Bengaluru

Source: Reuters “Walmart warns Trump tariffs may force price hikes: The Hill”

Note: This is Reuters’ report I post here for readers’ information. It does not mean that I agree or disagree with the report’ views.

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China to penalize $60 billion of U.S. imports in tit-for-tat move


Susan Heavey, Yawen Chen September 18, 2018

WASHINGTON/BEIJING (Reuters) – China and the United States plunged deeper into a trade war on Tuesday after Beijing added $60 billion of U.S. products to its import tariff list in retaliation for President Donald Trump’s planned levies on $200 billion worth of Chinese goods.

The tit-for-tat measures are the latest escalation in an increasingly protracted trade dispute between the world’s two largest economies.

On Monday, the U.S. administration said it will begin to levy new tariffs of 10 percent on about $200 billion of Chinese products on Sept. 24, with the tariffs to go up to 25 percent by the end of 2018.

“China is forced to respond to U.S. unilateralism and trade protectionism, and has no choice but to respond with its own tariffs,” the Finance Ministry said in a statement on its website on Tuesday.

Beijing will impose levies on a total of 5,207 U.S. products – ranging from liquefied natural gas to certain types of aircraft as well as cocoa powder and frozen vegetables – at 5 and 10 percent, instead of previously proposed rates of 5, 10, 20 and 25 percent, the finance ministry said.

Both countries’ tariffs come into force on Sept. 24.

So far, the United States has imposed tariffs on $50 billion worth of Chinese products to pressure China to make sweeping changes to its trade, technology transfer and high-tech industrial subsidy policies.

Beijing has retaliated in kind, but some analysts and American businesses are concerned it could resort to other measures such as pressuring U.S. companies operating in China.

While both sides said they were open to talks, Trump launched a Twitter broadside at China, accusing Beijing of targeting rural voters who had supported his presidency by hitting agricultural goods.

“China has openly stated that they are actively trying to impact and change our election by attacking our farmers, ranchers and industrial workers because of their loyalty to me,” Trump wrote.

It was not clear what statement from Beijing Trump was referring to in his post. A short video published this summer by Beijing had suggested that farmers would not vote for Trump if their incomes were hurt by his trade policies.

Trump’s latest escalation of tariffs on China comes after several rounds of talks yielded no progress. U.S. Treasury Secretary Steven Mnuchin last week invited top Chinese officials to discussions.

In light of the U.S. action, China is reviewing plans to send a delegation to Washington for new talks, the South China Morning Post reported on Tuesday, citing a government source in Beijing.

The Wall Street Journal reported that Beijing was considering sending Vice Commerce Minister Wang Shouwen to trade talks this month but not Vice Premier Liu He, a senior official who is close to China’s president.

U.S. Commerce Secretary Wilbur Ross said on Tuesday the next step on holding “constructive negotiations” was up to China.

Trump warned on Monday that if China takes retaliatory action against U.S. farmers or industries, “we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports.”

‘VERY UNFORTUNATE’

A senior Chinese securities market official said U.S. trade actions will fail as China has ample fiscal and monetary policy tools to cope with the impact. The government has already been ramping up spending on infrastructure.

“President Trump is a hard-hitting businessman, and he tries to put pressure on China so he can get concessions from our negotiations. I think that kind of tactic is not going to work with China,” Fang Xinghai, vice chairman of China’s securities regulator, said at a conference in the port city of Tianjin.

“So the question about whether or when to have a discussion is very importantly in their ballpark,” Ross told CNBC.

Fang told the Tianjin forum that he hopes the two sides can sit down and talk, but added that the latest U.S. move has “poisoned” theatmosphere.

The European Union trade chief said the tariff issues between the two should be resolved through the World Trade Organization. The EU and the United States have declared a truce in their own trade dispute while they negotiate.

“Trade wars are not good and they are not easy to win, and this escalation is of course very unfortunate,” European Trade Commissioner Cecilia Malmstrom told reporters, echoing one of Trump’s catch phrases that trade wars were easy to win.

China’s yuan currency CNY=CFXS slipped against the dollar on Tuesday after news of the U.S. measures. It has weakened by about 6.0 percent since mid-June, offsetting the 10 percent tariff rate by a considerable margin.

U.S. stock markets opened higher and the Nasdaq index was up 1 over 1 percent by mid-morning.

Reporting by Steve Holland, David Lawder, Ginger Gibson, Eric Beech, David Shepardson, Yawen Chen; Additional reporting by Kevin Yao in TIANJIN, John Ruwitch in SHANGHAI and Christian Shepherd, Michael Martina and Ryan Woo in BEIJING; Editing by Clive McKeef, Kim Coghill and Susan Thomas

Source: Reuters “China to penalize $60 billion of U.S. imports in tit-for-tat move”

Note: This is Reuters’ report I post here for readers’ information. It does not mean that I agree or disagree with the report’ views.


The Security Risks of a Trade War With China


Why the U.S. Should Be Wary of Economic Decoupling

By Ali Wyne August 6, 2018

Trade tensions between the United States and China continue to rise. In June, U.S. President Donald Trump’s administration announced that it would impose tariffs of 25 percent on $50 billion worth of Chinese exports, with the first wave targeting some 800 goods worth $34 billion. China pushed back with its own set of tariffs targeting the U.S. agricultural sector and industrial heartland. In response, Trump has reportedly ordered his administration to consider a 25 percent tariff on an additional $200 billion worth of Chinese exports. As the showdown escalates, many observers are understandably focused on the potential for a full-fledged trade war that could destabilize the world economy. But they should also consider second-order, longer-term implications—in the security realm. Up until recently, the two nations’ economic ties had served as an effective brake on escalating strategic distrust. A China less constrained by and invested in economic ties with the United States could pose a substantially greater challenge to U.S. foreign policy. For all the Trump administration’s frustrations with managing interdependence, the consequences of decoupling could mean even bigger headaches.

THE ROOTS OF TRADE TENSIONS

The United States buys more exports of Chinese goods than any other country. China, meanwhile, is the United States’ largest trading partner and the fastest-growing market for its exports. Yet neither side considers these deep, multifaceted trade links an unalloyed plus.

Trump often expresses irritation over the size of the U.S. trade deficit with China, but trade tensions between the two countries are rooted less in deficit figures than in high-tech competition. The United States sees China’s technological progress as a growing national security challenge. One of Trump’s top economic advisers, Peter Navarro, warned recently that “China’s investment in strategic technologies may ultimately pose the gravest danger to America’s manufacturing and defense industrial base.” He argued that “tariffs will form a critical line of defense against predatory trade practices China has used to the detriment of American industries.”

China, meanwhile, seeks to become a global leader in advanced manufacturing. Its Made in China 2025 initiative prioritizes ten industries—including information technology, aerospace equipment, and new materials—and aims to raise the domestically produced share of “basic core components and important basic materials” used in China to 40 percent by 2020 and 70 percent by 2025.

As seen with the case of ZTE—until recently China’s second-largest telecommunications equipment maker—Beijing depends heavily on Washington for high-tech inputs. In mid-April, the U.S. Commerce Department issued an order banning companies from selling parts to ZTE for seven years. Although the justification was that ZTE had circumvented U.S. sanctions on Iran and North Korea, the more fundamental concern was that the company could use U.S. technology to engage in espionage or even conduct cyberattacks against Washington. Without chips from Qualcomm and Intel and optical components from Acacia and Lumentum, ZTE could not function, and in early May it announced it had ceased “major operating activities.” A few days later, Trump said he was working with Chinese President Xi Jinping to rescue the company, prompting the Commerce Department to soften its earlier decree, but a bipartisan group in Congress urged the agency to stick with its original order, barring firms from doing any business with ZTE through 2025.
Although the company has just received a lifeline—the U.S. Senate passed a $716 billion defense appropriations bill last week that omitted an amendment introduced by Senator Marco Rubio (R-Fla.) and his Democratic colleague Chris Van Hollen (D-Md.) to reinstate Commerce’s ban on ZTE—Chinese leaders are increasingly convinced that Beijing will not be able to realize its full economic potential unless it becomes more self-reliant. China already saw the currency crisis that rattled the Asia-Pacific in the late 1990s and the global financial crisis that erupted a decade later as evidence that it needed to diversify away from U.S. consumption. Until recently, though, Beijing was primarily looking to shore up its own domestic resilience, and to do so by unwinding its embrace of Washington over time. Now China may seek a more rapid decoupling, less for economic reasons than for strategic ones. The country’s leaders believe that extant U.S. leverage over its economy could thwart the ambitions it has set out in Made in China 2025, which a ranking Communist Party official recently called “the guarantor” of China’s “sovereignty and prosperity.”

In late April, Xi stated that in “the next step of tackling technology, we must cast aside illusions and rely on ourselves.” His conclusion parallels that of Trump, who believes that the United States has eroded its competitiveness by buttressing the postwar order and joining multilateral trade agreements. The New York Times posits that this alignment of views may presage “a time when the economic engines of China and the United States are not so closely linked, particularly in high-tech industries.” A loosening of those links would have not only economic implications but also security ones.

A MORE REVISIONIST BEIJING?

There are few factors, after all, besides trade interdependence that compel the two countries to exercise mutual restraint and carry on multifaceted cooperation. The United States is a young, racially diverse democracy whose self-conception is molded anew by each wave of immigrants; China is a five-millennia-old, predominantly ethnic Han civilization that clings to a largely immutable identity. The two countries have markedly different, sometimes explicitly antithetical, perspectives on domestic governance and foreign policy—divergences amplified by each one’s insistence upon its own exceptionalism. Absent economic interdependence, U.S.-Chinese ties may well have grown more strained, if not antagonistic, over the past four decades.

There are few factors besides trade interdependence that compel the United States and China to exercise mutual restraint and carry on multifaceted cooperation.

In the long run, a China economically decoupled from the United States could scale back existing bilateral cooperation and take a more overtly revisionist attitude toward the postwar order. The Council on Foreign Relations’ Elizabeth Economy explains in her new book that Xi “is ambitious to lead but embraces globalization insofar as it controls the flow of ideas, as well as human and financial capital.” Beijing could steadily reduce its financial support for leading economic institutions such as the International Monetary Fund; prioritize the development of economic and security arrangements that presently leave out the United States (such as the Regional Comprehensive Economic Partnership and the Shanghai Cooperation Organization) and undertake to construct other exclusionary ones; more proactively attempt to drive wedges between the United States and long-standing allies by casting Washington as an inconsistent and unreliable steward of world order and asserting that Beijing is better suited to adapting that system to contemporary geopolitical realities; and make a more concerted push to challenge Washington on ideological grounds.

Beijing could also further undercut the Trump administration’s “maximum pressure” campaign on North Korea. U.S. Secretary of State Mike Pompeo testified in June that there has been a “modest amount” of backsliding in China’s enforcement of multilateral sanctions on Pyongyang, acknowledging that the Chinese are “not enforcing control over their cross-border areas as vigorously as they were six or 12 months ago.” That admission came shortly before reports of a new U.S. intelligence assessment, based on evidence collected after Trump’s historic Singapore meeting with North Korean leader Kim Jong Un, that Pyongyang not only seeks to “deceive the United States about the number of nuclear warheads” in its arsenal but also may maintain more than one secret site for enriching fissile material.

On Iran, in the wake of the U.S. withdrawal from the Joint Comprehensive Plan of Action, China could decline to join any U.S.-initiated effort to sanction the regime should it resume its pursuit of nuclear weapons. It might even go further, boosting energy ties with and increasing arms sales to Tehran while expanding the scope and depth of its alignment with Russia to frustrate U.S. foreign policy objectives in the Middle East and eastern Europe. It could also accelerate its ongoing militarization of a crucial maritime chokepoint, the South China Sea; more aggressively press its claims in the East China Sea; and increase preparations for an attack on Taiwan, appreciating that a United States that is already militarily overstretched has little desire for an armed confrontation with the country possessing the world’s second-largest economy.

WILL THE DECOUPLING CONTINUE?

Given the breadth, complexity, and interconnectedness of global supply chains, the United States and China would only be able to unwind their current interdependence very slowly. In 2013, when two-way trade totaled $562.2 billion, the Brookings Institution’s Thomas Wright concluded that Washington and Beijing “have no way of significantly reducing trade with each other through protectionism without setting in motion a general unraveling of the global trading system that each relies upon.” That judgment holds even truer today, given that two-way trade was 13 percent higher in 2017 than it was in 2013.

Still, China’s economic strength relative to the United States has increased significantly over the past decade, and it will continue to grow. Xi declared this past October, moreover, that “no one should expect China to swallow anything that undermines its interests.” In other words, expect an increase in both Beijing’s ability and willingness to absorb the pain of economic decoupling with the United States. Trump may well want to accelerate this trend, but the potential security consequences of doing so should give his administration pause.

Source: Foreign Affairs “The Security Risks of a Trade War With China”

Note: This is Foreign Affairs’ article I post here for readers’ information. It does not mean that I agree or disagree with the article’s views.


Trump slaps tariffs on $200 billion in Chinese goods, spares some consumer tech


David Lawder, Jeff Mason September 18, 2018

WASHINGTON (Reuters) – U.S. President Donald Trump escalated his trade war with China on Monday, imposing 10 percent tariffs on about $200 billion worth of Chinese imports, but sparing smart watches from Apple (AAPL.O) and Fitbit (FIT.N) and other consumer products such as bicycle helmets and baby car seats.

Trump, in a statement announcing the new round of tariffs, warned that if China takes retaliatory action against U.S. farmers or industries, “we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports.”

The iPhone was not among the ‘wide range’ of products that Apple told regulators would be hit by the $200 billion round of tariffs in a September 5 comment letter to trade officials.

But if the Trump administration enacts a further round of tariffs on $267 billion in goods, engulfing all remaining U.S. imports from China, the iPhone and its competitors would not likely be spared.

Collection of tariffs on the long-anticipated list will start September 24 but the rate will increase to 25 percent by the end of 2018, allowing U.S. companies some time to adjust their supply chains to alternate countries, a senior administration official said.

So far, the United States has imposed tariffs on $50 billion worth of Chinese products to pressure China to make sweeping changes to its trade, technology transfer and high-tech industrial subsidy policies.

The escalation of Trump’s tariffs on China comes after talks between the world’s two largest economies to resolve their trade differences produced no results. U.S. Treasury Secretary Steven Mnuchin last week invited top Chinese officials to a new round of talks, but thus far nothing has been scheduled.

“We have been very clear about the type of changes that need to be made, and we have given China every opportunity to treat us more fairly,” Trump said in his statement. “But, so far, China has been unwilling to change its practices.”

A senior Trump administration official told reporters that the United States was open to further talks with Beijing, but offered no immediate details on when any new meetings may occur.

“This is not an effort to constrain China, but this is an effort to work with China and say, ‘It’s time you address these unfair trade practices that we’ve identified that others have identified and that have harmed the entire trading system,’” the official said.

China has vowed to retaliate further against any new U.S. tariffs, with state-run media arguing for an aggressive “counterattack.”

China’s yuan currency CNY=CFXS has weakened by about 6.0 percent against the U.S. dollar since mid-June, offsetting the 10 percent tariff rate by a considerable margin.

CONSUMER TECH TRIMMED

The U.S. Trade Representative’s office eliminated 297 product categories from the proposed tariff list, along with some subsets of other categories, but administration officials said the total value of the revised list would still be “approximately $200 billion.”

A broad, $23 billion category of internet-connected devices will remain subject to tariffs, but some products, such as smart watches, Bluetooth devices, and other consumer-focused technology products were removed following a lengthy public vetting period during which more than 6,000 comments were received.

Also spared from the tariffs were Chinese inputs for U.S.-produced chemicals used in manufacturing, textiles and agriculture.

Consumer safety products made in China, such as bicycle helmets sold by Vista Outdoor (VSTO.N) and baby car seats and playpens from Graco Inc (GGG.N) also were taken off the list.

But the adjustments did little to appease technology and retail groups who argued that the tariffs would hit consumers hard.

“President Trump’s decision to impose an additional $200 billion is reckless and will create lasting harm to communities across the country,” said Dean Garfield, president of the Information Technology Industry Council, which represents major tech firms.

AAPL.OFIT.NVSTO.NGGG.N

The Retail Industry Leaders Association pointed out that the new tariffs would still hit more than $1 billion worth of gas grills from China, $843 million worth of luggage and travel bags, $825 million worth of mattresses, and $1.9 billion worth of vacuum cleaners.

“Tariffs are a tax on American families, period,” said Hun Quach,” RILA’s vice president for international trade. “Consumers – not China – will bear the brunt of these tariffs and American farmers and ranchers will see the harmful effects of retaliation worsen.”

Republican party U.S. lawmakers urged the Trump administration to pursue negotiations with China to resolve trade differences, while applauding Trump’s tough stance on Chinese intellectual property and trade practices.

“The sooner President Xi and President Trump meet to craft a new trade path forward, the better,” said Representative Kevin Brady, chairman of the House Ways and Means Committee.

Reporting by Steve Holland, David Lawder, Ginger Gibson, Eric Beech and David Shepardson; Editing by Clive McKeef

Source: Reuters “Trump slaps tariffs on $200 billion in Chinese goods, spares some consumer tech”

Note: This is Reuters’ report I post here for readers’ information. It does not mean that I agree or disagree with the report’ views.

 


Trump denies pressure for trade deal as China welcomes U.S. talks invite


Steve Holland, Michael Martina September 13, 2018

WASHINGTON/BEIJING (Reuters) – U.S. President Donald Trump said on Thursday that the United States was under no pressure to make a trade deal with China, even as Chinese officials welcomed an invitation from Washington for a new round of talks with more U.S. tariffs looming.

He said on Twitter that a Wall Street Journal story on Wednesday about the talks invitation from Treasury Secretary Steven Mnuchin amid rising U.S. political pressure on Trump to ease up on trade fights “has it wrong.”

“We are under no pressure to make a deal with China, they are under pressure to make a deal with us,” Trump tweeted. “Our markets are surging, theirs are collapsing. We will soon be taking in Billions in Tariffs & making products at home. If we meet, we meet.”

The administration is readying a final list of $200 billion in Chinese imports on which it plans to levy tariffs of 10-25 percent in coming days, greatly expanding the trade war between the world’s two largest economies.

News confirmed by White House economic adviser Larry Kudlow that the Trump administration had invited Chinese officials to restart trade talks gave a lift to Asian stocks, including Chinese shares and the yuan currency.

Chinese Foreign Ministry spokesman Geng Shuang told reporters that China welcomed the invitation, and the two countries were discussing the details.

“China has always held that an escalation of the trade conflict is not in anyone’s interests. In fact, from last month’s preliminary talks in Washington, the two sides’ trade talk teams have maintained various forms of contact, and held discussions on the concerns of each side,” he said.

Two people familiar with the effort said Mnuchin’s invitation was sent to his Chinese counterparts, including Vice Premier Liu He, the top economic adviser to Chinese President Xi Jinping, for talks in coming weeks, with the time and the venue still to be agreed.

“There’s some discussions and information that we received that the Chinese government – the top of the Chinese government wished to pursue talks,” Kudlow told Fox Business Network on Wednesday. “And so, Secretary Mnuchin, who is the team leader with China, has apparently issued an invitation.”

A meeting among Cabinet-level officials could ease market worries over the escalating tariff war that threatens to engulf all trade between the world’s two largest economies and raise costs for companies and consumers.

But Kudlow was non-committal over the chances of a breakthrough, adding: “I guarantee nothing.”

The last talks, between mid-level U.S. and Chinese officials on Aug. 22 and 23, failed to reach any agreement.

 

RAISE OR FOLD

So far, the United States and China have hit $50 billion worth of each other’s goods with tariffs in a dispute over U.S. demands that China make sweeping economic policy changes, including ending joint venture and technology transfer policies, rolling back industrial subsidy programs and better protecting American intellectual property.

The Trump administration’s $200 billion tariff list would hit a broad array of internet technology products and consumer goods from handbags to vacuum cleaners and bicycles to furniture.

Trump said last week that he also had tariffs on an additional $267 billion worth of goods ready “on short notice if I want.”

China has threatened retaliation, which could include action against U.S. companies operating there.

China’s Commerce Ministry said both sides would want to avoid escalation.

“I believe both countries would not be willing to see such a situation,” ministry spokesman Gao Feng said on Thursday.

 

GROWING DISMAY

The invitation, first reported by the Wall Street Journal, comes amid a swelling chorus of opposition to tariffs from Western business circles.

On Thursday, the U.S. business lobbies AmCham China and AmCham Shanghai published a joint survey showing that the negative impact on U.S. companies in China of tit-for-tat tariffs Washington and Beijing have imposed on one another was “clear and far reaching.”

More than 60 percent of U.S. companies polled said the U.S. tariffs were already affecting their business operations, while a similar percentage said Chinese duties on U.S. goods were having an impact on business.

AmCham China and AmCham Shanghai urged the Trump administration to re-think its approach.

The European Union Chamber of Commerce in China released its own survey on Thursday saying the tariffs were causing “significant disruptions” to global supply chains and “seriously impacting” non-Chinese and non-American companies.

A day earlier, more than 60 U.S. industry groups launched a coalition – Americans for Free Trade – to take the fight against the tariffs public.

The Global Times, published by the ruling Communist Party’s People’s Daily, cautioned against seeing the invitation from Washington as a sign that the Trump administration had softened its stance.

“Washington’s overall attitude is still tough, but they do not reject a ‘talk and fight’ strategy. By doing so, they can both ease the anxiety of American society and gradually collapse the will of the Chinese side,” the newspaper said in an editorial on Thursday.

“China must hold the expectation that it is probably not the time when both sides can reach an agreement.”

Additional reporting by David Lawder, Susan Heavey and Ginger Gibson in WASHINGTON, and Christian Shepherd, Yawen Chen and Se Young Lee in BEIJING; Editing by Simon Cameron-Moore and Marguerita Choy

Source: Reuters “Trump denies pressure for trade deal as China welcomes U.S. talks invite”

Note: This is Reuters’ report I post here for readers’ information. It does not mean that I agree or disagree with the report’ views.


US firms in China feeling ‘clear and far reaching’ trade war pinch: survey


September 13, 2018

SHANGHAI (Reuters) – American companies in China are being hurt by tariffs in the growing trade war between Washington and Beijing, according to a survey of hundreds of firms, prompting the U.S. business lobbies behind the poll to urge the Trump administration to reconsider its approach.

The United States and China have imposed tariffs on $50 billion of each other’s goods since July as trade frictions between the world’s two biggest economies worsened, despite several rounds of negotiations.

President Donald Trump has criticized China’s record trade surplus with the United States, and has demanded that Beijing cut it immediately, threatening further tariffs on an additional $200 billion worth of goods – and possibly more.

The negative impact of the tariffs on U.S. companies has been “clear and far reaching”, according to the joint survey by AmCham China and AmCham Shanghai published on Thursday.

More than 60 percent of U.S. companies polled said the U.S. tariffs were already affecting their business operations, while a similar percentage said tariffs by China on U.S. goods were having an effect on business.

Companies reported the tariffs were pressuring profits, reducing demand for their products and driving up production costs.

Roughly three-in-four firms surveyed said duties on an additional $200 billion worth of Chinese goods would hurt business further, and close to 70 percent said additional retaliatory Chinese tariffs would be bad for business.

“This survey affirms our concerns: tariffs are already negatively impacting U.S. companies and the imposition of a proposed $200 billion tranche will bring a lot more pain,” said Eric Zheng, chairman of AmCham Shanghai.

“If almost a half of American companies anticipate a strong negative impact from the next round of U.S. tariffs, then the U.S. administration will be hurting the companies it should be helping,” he said.

“We support President Trump’s efforts to reset U.S.-China trade relations, address long-standing inequities and level the playing field. But we can do so through means other than blanket tariffs.”

On Wednesday, Larry Kudlow, who heads the White House Economic Council, told Fox Business Network that Treasury Secretary Steven Mnuchin had sent an invitation to senior Chinese officials to restart trade talks.

More than 430 companies responded to the survey between Aug. 29 and Sept. 5, which Ken Jarrett, president of AmCham Shanghai, said had been conducted in part to provide AmCham with data for meetings with members of congress later this month.

China may not be able to match future U.S. tariffs dollar for dollar and has warned that it would take other measures.

More than 52 percent of respondents to the survey reported already suffering the consequences of such measures, mainly through increased inspections, slower customs clearance and “other complications from increased bureaucratic oversight or regulatory scrutiny”.

Nearly two-thirds of the companies that responded have not relocated nor were they considering moving manufacturing facilities away from China. But of those that were, the top destinations were Southeast Asia and the Indian subcontinent.

Only 6 percent said they were considering relocation back to the United States, the survey said.

Meanwhile, nearly a third of companies said they were considering delaying or cancelling investments, underscoring the heightened uncertainty created by the trade tensions.

About 30 percent said they were adjusting supply chains by seeking to source components and/or assembly outside the U.S., and about the same number were seeking to source components and/or assembly outside China.

On Wednesday, more than 60 U.S. industry groups launched a coalition – Americans for Free Trade – to take the fight against the tariffs public.

(This corrected version changes million to billion in paragraph three)

Reporting by John Ruwitch; Editing by Kim Coghill

Source: Reuters “US firms in China feeling ‘clear and far reaching’ trade war pinch: survey”

Note: This is Reuters’ report I post here for readers’ information. It does not mean that I agree or disagree with the report’ views.


Factbox: U.S. companies bemoan impact of Trump trade tariffs


September 10, 2018

(Reuters) – China’s foreign ministry said on Monday it would retaliate if U.S. President Donald Trump goes ahead with his plan of imposing tariffs on practically all Chinese imports.

Trump on Friday threatened additional duties on $267 billion of Chinese goods over and above planned tariffs on $200 billion worth of goods.

The following are comments made by U.S. companies since Trump’s announcement of tariffs on $200 billion of Chinese imports. For a factbox on comments by U.S. companies on previous tariffs, click here reut.rs/2N2pn5x.

Reuters Graphic
** Apple Inc said a “wide range” of its products including the Apple Watch would be affected by proposed U.S. tariffs on Chinese goods but gave no sign of an impact on its iPhone.

Apple saidits MacMini, a low-priced computer that comes without a keyboard or mouse, would be affected. Many Apple accessories, such as mice, keyboards, chargers and even leather covers for iPhones and iPads would also face tariffs, it said.

AirPods headphones, some of Apple’s Beats headphones and its new HomePod smart speaker also face levies. Apple added that computer parts for its U.S. operations would be hit by the tariffs.

** Dell Technologies said the proposed tariffs will increase costs of vital parts and components for its U.S. services and manufacturing operations.

Dell added that the tariffs on desktops/servers, computer parts, network switches could result in “serious damage” to the company and its employees.

** Intel Corp said proposed tariffs would negatively affect U.S. businesses and “stifle advancements” in telecom infrastructure, including next generation technologies like 5G.

The company said the tariffs will raise costs for U.S.-based technology companies that manufacture ICT products such as desktop computers, laptops and servers.

** Fitness tracker maker Fitbit said increased tariffs would compromise its investments in U.S.-based innovation. The company also said tariffs on wearable products would not effectively advance the administration’s goals.

** Agilent Technologies said the increased duties would financially impede its U.S. operations and its end customers in the U.S. and abroad. It added that substantial tariff increases will limit its ability to reinvest in U.S. operations, affecting employees engaged in R&D, design, other support operations.

Agilent also said it does not believe the goods it imports are specifically covered by the “Made in China 2025” industrial policy.

** Office Depot said the tariff proposal, which covers non-household seating and furniture it sells, would lead to immense supply chain disruptions and a likely loss of jobs. Office Depot also said the tariffs would impact small- and medium-sized U.S. companies.

** Newell Brands’ units, including Goody Products and Rubbermaid Commercial Products, said tariffs on items ranging from elastic hair bands to art supplies would hurt American consumers since the tariff prices will be paid by the company and consumers.

They also said consumer goods targeted under tariffs do not come under the scope of “Made in China 2025” program.

** Whirlpool Corp said proposed tariffs on components from China would increase costs and create supply chain problem for U.S. manufacturers, putting them at a competitive disadvantage.

The company said the administration should remove “critical components” such as parts of refrigerators and mixers from the proposed list and add finished products such as dishwashers to mitigate negative impact on U.S. manufacturing.

** Carrier Transicold, a unit of Carrier Corp/United Technologies Corp, said it was concerned the proposed 10 percent additional duty on various industrial components will reduce its global competitiveness and undercut its U.S. operations.

Carrier asked USTR to exclude items including parts for refrigerators, freezers and other refrigerating or freezing equipment from the proposed tariffs.

Compiled by Arjun Panchadar in Bengaluru; editing by Patrick Graham and Anil D’Silva

Source: Reuters “Factbox: U.S. companies bemoan impact of Trump trade tariffs”

Note: This is Reuters’ report I post here for readers’ information. It does not mean that I agree or disagree with the report’ views.