china tarriffs on lcd monitors sold to china for sale

Prices for big-screen televisions and some household appliances could go up significantly if the Trump administration"s proposed tariffs on Chinese imports are enacted.

"On a $4,000 TV ... the tariffs might have a several-hundred-dollar price impact," said David French, senior vice president for government relations at the National Retail Federation, an advocacy group.

"We"re still assessing the list," French said. "There is machinery involved in consumer goods. ... There are chemicals listed that we believe are components of cosmetics and toiletries."

The Office of the U.S. Trade Representative proposed late Tuesday an additional 25 percent tariff on an extensive list of Chinese imports, valued at $50 billion for the year and ranging from aircraft parts to vaccines. A public hearing on the list is scheduled for May 15, and filing requests to appear and comment are due April 23.

"Some goods won"t be imported at all with a 25 percent tariff, but prices of domestic goods will go up the full amount of the tariff," said Nicholas Lardy, a senior fellow at the Peterson Institute for International Economics in Washington.

But he and other analysts pointed out that for a U.S. economy roughly $18 trillion in size, 25 percent tariffs on $50 billion of Chinese imports will have a relatively small effect overall on consumer prices.

Chinese manufacturer Haier, which acquired GE Appliances in 2016, "only imports a very small number of niche dishwashers designed for small spaces," spokesperson Kim Freeman said in an email to CNBC. "We make about 95 percent of our dishwashers in the U.S. in Louisville, Kentucky."

The National Retail Federation estimates that access to imported goods through free trade agreements boosts the purchasing power of the average American family by $18,000 a year.

"It"s going to be very difficult for the retailer to manage their supply chain in order to handle these tariffs," French said. "Consumers may be price sensitive enough that they may slow their holiday purchases. These may be "Grinch" tariffs."

TAIPEI (Reuters) - Taiwan’s Foxconn is exploring the sale of its new $8.8 billion display panel factory in China, people familiar with the matter told Reuters, as demand for the product wanes amid an intensifying U.S.-China trade war.FILE PHOTO: A motorcyclist rides past the logo of Foxconn, the trading name of Hon Hai Precision Industry, in Taipei, Taiwan March 30, 2018. REUTERS/Tyrone Siu/File Photo

Foxconn, formally known as Hon Hai Precision Industry, is in talks to appoint banks to find a buyer for its liquid crystal display (LCD) factory that is being built in the southern Chinese city of Guangzhou, said two people with direct knowledge of the matter.

A sale would come at a delicate time for Foxconn, which has extensive investments in China, a large roster of U.S. clients that includes Apple Inc, and is having to navigate a tricky path amid the protracted trade war between Washington and Beijing. It would mark one of its largest divestments from China.

Foxconn’s discussions are at an initial stage and it has not yet come up with a price tag for the so-called Gen-10.5 facility specializing in large-screen LCDs, the sources said, adding a sale was not a surety.

Foxconn, in a written statement to Reuters, said: “As a matter of company policy, Foxconn does not respond to market rumors or speculation.” The sources requested anonymity because the deliberations are confidential.

U.S. President Donald Trump sharply raised the stakes in the bruising trade war with China and jolted global financial markets by vowing on Thursday to impose a 10% tariff on $300 billion of Chinese imports from September 1.

The trade war has disrupted technology global supply chains in a major way, forcing Foxconn to review its own. That and slowing demand for large-screen televisions and monitors had prompted Foxconn’s management to seek a buyer for the LCD plant, one of the sources familiar with the management’s thinking said.

Questions were also being raised within Foxconn on the need for the Guangzhou project. “Existing plants are already not running at full capacity ... why need another one?,” the source said.

The second source said the new factory would not go into production until early October, which makes it less appealing for buyers because of the additional risks as compared to an already operating plant.

The Nikkei daily reported earlier this year that the company would delay most of its planned production in Guangzhou for a minimum of six months, but Foxconn said the project was on schedule.

Dubbed the largest single investment ever in the southern city by Chinese media, Foxconn announced the Guangzhou plant in 2016, hoping to start operations by 2019 to meet an expected rise in demand for large-screen TVs and monitors in Asia in a challenge to top Chinese display maker BOE Technology Group.

The project was mainly run by a joint venture between the Guangzhou government and Japan’s Sakai Display Products, an advanced panel factory owned by Foxconn founder Terry Gou and Japan’s Sharp Corp, Foxconn’s display unit.

The Japanese panel maker said on Thursday it would build a plant in Vietnam to make flat screens and electronic devices to guard against additional U.S. import tariffs on Chinese goods.

The global display industry has been struggling with a supply glut and tumbling earnings due to moribund sales of televisions and smartphones, and the worsening trade dispute that could raise product prices and dampen consumer demand.

Taipei-based Foxconn said in April that it remained committed to building a display plant and tech research facilities in Wisconsin amid growing skepticism about the fate of the $10 billion project. Trump had cited Foxconn’s Wisconsin plans as proof he was reviving American manufacturing.

WASHINGTON, Aug 13 (Reuters) - The Trump administration will delay 10% tariffs on certain Chinese products, including laptops and cell phones, that had been scheduled to start next month, the Office of the U.S. Trade Representative said on Tuesday.

Other products whose tariffs will be delayed until Dec. 15 include “computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing,” the USTR said in a statement. A separate group of products will also be exempt altogether “based on health, safety, national security and other factors,” it added. (Reporting by David Shepardson and Makini Brice; Writing by Susan Heavey; Editing by Tim Ahmann)

Approximately 90 percent of all LCD modules are manufactured in mainland China. The remaining 10 percent are manufactured primarily between Japan and Taiwan, and some in Korea. China’s clear stronghold in manufacturing, coupled with its large volume of imports to the U.S., mean these tariffs will definitely impact the industry.

The US government said the tariffs where created in response to China’s Unfair Trade Practices. Specifically, the Section 301 investigation by the USTR revealed:

China uses joint venture requirements, foreign investment restrictions, and administrative review and licensing processes to require or pressure technology transfer from U.S. companies.

China directs and unfairly facilitates the systematic investment in, and acquisition of, U.S. companies and assets to generate large-scale technology transfer.

China conducts and supports cyber intrusions into U.S. commercial computer networks to gain unauthorized access to commercially valuable business information.

Unfortunately, while the USTR works to rectify inequities in these unfair practices, many American manufacturers will have to pay higher prices for their components. That works its way up the supply chain and can ultimately lead to higher prices for American consumers.

The USITC (Office of Tariff Affairs and Trade Agreements) is responsible for publishing the Harmonized Tariff Schedule of the United States Annotated (HTSA). The HTSA provides the applicable tariff rates and statistical categories for all merchandise imported into the United States; it is based on the international Harmonized System, the global system of nomenclature that is used to describe most world trade in goods. Although the USITC publishes and maintains the HTSA in its various forms, Customs and Border Protection is the only agency that can provide legally binding advice or rulings on classification of imports.

Many people are asking about using alternate HTC codes with lower burden implications. Unfortunately, these codes are abundant and complicated. There should be exactly one code that properly categorizes your product.

When a display is designed and built for a single application, it may be more appropriate to use a harmonized tariff code for the end-product instead of the display component. An LCD in a cellphone is a good example of this.

A popular way to do this is to reevaluate your current HTC codes and make sure they’re correct. This can be done with in-house council or the use of a consultant specializing in this area of the government. Ultimately, however, you need get a ruling from the government to be certain you are using the correct code.

Finding a tariff code by perusing the USTR HTC tariff code list can be overwhelming and risky. If the code is chosen incorrectly, it can lead to fines and penalties from the USTR.

Some companies are searching for key suppliers outside of the China region and working towards qualifications of those factories. Others are exploring having key components of the purchased assembly outsourced outside of China so it still satisfies the correct definition of Country of Origin. Again, violating these definitions can lead to costly fines and penalties.

WASHINGTON — President Trump on Tuesday unexpectedly put off new tariffs on many Chinese goods, including cellphones, laptop computers and toys, until after the start of the Christmas shopping season, acknowledging the effect that his protracted trade war with Beijing could have on Americans.

Mr. Trump pushed a 10 percent tariff on some imports to Dec. 15, and excluded others from it entirely, while facing mounting pressure from businesses and consumer groups over the harm they say the trade conflict is doing.

The stock market soared after the announcement, following weeks of volatility driven by fears that the standoff between the world’s two largest economies could hamper global economic growth.

The decision was the latest twist in a dispute during which China and the United States have alternately escalated tensions with tit-for-tat tariffs and softened their positions as they sought a deal.

Mr. Trump continued to insist on Tuesday that the trade war was hurting only China. But he also admitted that there was potential for the new tariffs to inflict economic pain closer to home.

“Just in case they might have an impact on people,” the president told reporters, “what we’ve done is we’ve delayed it so that they won’t be relevant for the Christmas shopping season.”

Mr. Trump, frustrated that negotiations had failed to yield an agreement, said on Aug. 1 that the United States would impose the 10 percent tariff on $300 billion worth of Chinese imports on Sept. 1. That would be in addition to a 25 percent tariff already imposed on $250 billion of Chinese goods.

But on Tuesday, the United States trade representative’s office said that while a substantial amount of Chinese imports would be subject to the Sept. 1 levy as planned, various consumer electronics, shoes and other items would be spared until mid-December.

The office also said it was dropping 25 types of products from the tariff list altogether “based on health, safety, national security and other factors.” The items include car seats, shipping containers, cranes, certain fish, and Bibles and other religious literature, a spokesman said.

Stocks rallied immediately on the news, with the S&P 500 climbing nearly 2 percent in morning trading before ending the day up 1.5 percent. The benchmark index was lifted partly by shares in retailers and computer chip producers that have been especially sensitive to the trade tensions.

More on ChinaA Messy Pivot:As Beijing casts aside many Covid rules after nationwide protests, it is also playing down the threat of the virus. The move comes with its own risks.

Space Program:Human spaceflight achievements show that China is running a steady space marathon rather than competing in a head-to-head space race with the United States.

A Test for the Economy:China’s economy is entering a delicate period when it will face unique challenges, amid the prospect of rising Covid cases and wary consumers.

New Partnerships:A trip by the Chinese leader Xi Jinping to Saudi Arabia showcased Beijing’s growing ties with several Middle Eastern countries that are longstanding U.S. allies and signaled China’s re-emergence after years of pandemic isolation.

Best Buy, which gets many of the products it sells from China, was among the best-performing stocks in the S&P 500, rising more than 6.5 percent. Apple, whose iPhones and computers would have been subject to the tariffs, climbed more than 4 percent. The technology-heavy Nasdaq composite index ended the day up more than 2 percent.

The tariff announcement followed what Mr. Trump described as a “very productive” call involving Liu He, China’s vice premier and its lead trade negotiator; Robert Lighthizer, the United States trade representative; and Steven Mnuchin, the Treasury secretary.

The three agreed to speak again in two weeks, China’s state-run Xinhua News Agency reported. Negotiators had planned to meet again early next month in Washington.

Now, about $112 billion of Chinese goods will be hit with the 10 percent levy on Sept. 1, according to Chad Bown, a senior fellow at the Peterson Institute for International Economics. Another $160 billion in goods will be subject to the tariff as of Dec 15, he estimated.

Mr. Trump has been pressing Beijing since last year for an agreement that would, among other things, strengthen protections for American intellectual property, open Chinese markets to American business and result in China’s buying large quantities of American energy and agricultural goods.

But negotiators have made little progress since May. The stumbling blocks included whether the White House would roll back the tariffs already in place and whether Beijing would enshrine in law the changes it pledged to make.

As his re-election campaign gears up, Mr. Trump is increasingly focused on ending the conflict in order to maintain his support among farmers, who have lost some of their main export opportunities as China ordered state-owned companies to stop buying American soybeans. But he has also expressed an unwillingness to accept a deal with China that falls short of his goals.

[Mr. Trump said his tariffs and tax cuts would set off a wave of investment, but data show they havenot caused a significant returnof factory activity from overseas.]

The president has tried to persuade China to buy large amounts of American farm goods before an agreement is reached, but that hasn’t happened. He continued to berate China on Tuesday for not making such purchases and suggested that the tariffs might force it to do so.

“As usual, China said they were going to be buying ‘big’ from our great American Farmers,” he wrote on Twitter. “So far they have not done what they said. Maybe this will be different!”

Chinese officials and state media outlets have responded to Mr. Trump’s prodding by taking an increasingly strident tone and threatening to punish American firms.

China has also allowed the value of its currency to fluctuate in recent weeks, raising the specter that it would use it as a weapon. That prompted the White House to label China a currency manipulator, the first time the United States had done that since 1994.

The tariff delay could create an opening for Chinese officials to soften their statements. There is also the question of whether the Trump administration will allow American companies to continue supplying certain goods to the Chinese telecommunications giant Huawei despite a ban on such trade because of national security concerns.

A so-called temporary general license that allows American companies to supply Huawei despite the ban is set to expire on Monday, but the Trump administration could renew it.

Trade groups said they welcomed the reprieve on tariffs for the holiday season, but added that the changes would not reduce the uncertainty they faced.

“The hope is that this creates an opportunity for the two sides to get back to the table, resume the broad-based trade talks and look at some confidence-building measures that would boost the prospects of a big deal down the road,” said Myron Brilliant, the executive vice president of the U.S. Chamber of Commerce.

Matt Priest, the president of the Footwear Distributors and Retailers of America, said the delay was also an acknowledgment by the Trump administration that Americans were bearing the cost of the trade war.

“It is no coincidence that the administration is allowing certain shoes to come in without raising taxes in hopes that prices do not rise at retail during the holidays,” Mr. Priest said. “While we are pleased with the decision to delay new tariffs on certain shoes, we are not satisfied.”

Among corporate leaders, Timothy D. Cook, Apple’s chief executive, has been particularly active in lobbying the president and Mr. Lighthizer against the tariffs. Apple, which builds most of its products in China, has been hit by the tariffs on some smaller products like the Mac Mini, computer parts and cables. But the latest round of proposed levies significantly raised the stakes for the company.

So far, Apple has not raised prices because of the initial tariffs. And the company would probably try to absorb a 10 percent levy on iPhones at first, too, Daniel Ives, a technology analyst for Wedbush Securities, said in a research note Tuesday.

But if the tariffs continue into next year, he said, “Apple will have no choice but to pass this incremental $75 to $100 per smartphone to U.S. consumers.”

Mr. Trump’s tariffs have been front and center for corporate executives and investors since the trade war flared anew in May, and the topic had often been cited on earnings calls between company leaders and shareholders.

With the most onerous levies — those set for Sept. 1 — not yet in place, retail executives have mostly played down their impact on profits, at least publicly. The biggest retailers, including Best Buy, Macy’s, Target and Walmart, are scheduled to report earnings for the most recent quarter starting this week.

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President Donald Trump and his administration’s proposed expansion of tariffs of 25 percent onto roughly $300 billion worth of imports from China has caused the tech industry to respond. The latest round of tariffs may include a number of tech items, including laptops, tablets, headphones, keyboards, solid state drives and more. Now a deal has been made, though, which could delay some tariffs indefinitely.

Several technology companies, vendors and retailers made their thoughts known in public comments to the Office of the United States Trade Representative (USTR). That was during a period of public hearings that took place from June 17 through June 25. But the tariffs have been delayed several times. The USTR announced in August that some of the the tariffs, including many on tech which were planned for September, had previously been delayed until December 15.

Trump announced new tariffs on Twitter, but at 10 percent, on the new goods. This was after he briefly suspended the tariffs after beginning new talks with Chinese leader Xi Jinping. After China threatened to retaliate, Trump bumped current tariffs from 25% to 30% and upcoming tariffs in December from 10 to 15%.

In a statement on August 13, the USTR said that for "certain articles" will see delays until Dec. 15, including "cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing."

But on December 13, the Wall Street Journal reported that the two sides were coming to a limited trade deal. That calls for China to purchase $50 billion worth of agricultural goods in 2020, as well as "energy and other goods." In return, the U.S. may reduce rates on existing imports and cancel the tariffs that were meant to go into place on Dec. 15, which include many tech products.

The tariffs are wide-ranging and affect many industries, including technology, agriculture, clothing and metals. There are hundreds of product categories listed on the website for the Harmonized Tariff System (HTS) of the United States. You can read the full list of the latest round of tariffs here.

8471.30.01Portable automatic data processing machines, not over 10 kg, consisting at least a central processing unit, keyboard and display.Laptops, tablets

8517.62.0090Machines for the reception, conversion and transmission or regeneration of voice, images or other data, nesoi.Routers, NAS devices, smart speakers, smartwatches

8517.70.00Parts of telephone sets; parts of other apparatus for the transmission or reception of voice, images or other data, including apparatus for.Repair parts, especially for smartphones

8528.52.00Other monitors capable of directly connecting to and designed for use with an automatic data processing machine of heading 8471.Flat-panel monitors

8528.72.64Color television reception apparatus w/flat panel screen, video display diagonal over 34.29 cm, incorporating a VCR or player.Flat-panel televisions

Other technologies, including discs, batteries, cameras and projectors also appear on the list in various forms. And, CPU fans, processors (8542.30.01) are also scheduled.

In August, China threatened to place tariffs on $75 billion in U.S. goods in Trump follows through on his threats to China. The plan includes tariffs of 5 or 10% on a American products, including oil, agricultural products, automobiles and more. The tariffs are scheduled to start the same days as the U.S. ones - Sept. 10 and Dec. 15.

Following this, Trump said he would raise tariffs on $250 billion of goods to 30% from 25%. New tariffs on $300 billion worth of goods in and December will move from 10% to 15%.

On October 11, the U.S. and China struck a "phase one deal" that eliminates October tariffs. December tariffs, which may affect consumer electronics, are still under discussion.

But a "Phase One" trade deal in December put an indefinite delay on some of those tariffs. Per Reuters, tariffs on laptops and cellphones won"t go into place. The Entertainment Software Association told Polygon that the tariffs also won"t affect video game consoles.

A number of tech companies have commented on the tariffs publicly, and they all have expressed a wish for, unsurprisingly, categories affecting their businesses to be removed from the list.

Two notable joint comments have also been written. The first was one from Intel, HP, Dell and Microsoft regarding laptops while another came from Nintendo of America, Microsoft and Sony Interactive Entertainment about the effects on video game consoles.

All of the comments have some commonalities. Many mention the costs of moving existing supply chains out of China to either the United States or other countries in Asia. Additionally, they point out that companies that do not serve the United States as a primary customer base could gain a competitive advantage, as well as brands outside of the United States. (Fitbit, for example, suggested Xiaomi and Huawei would be strengthened as it was affected.)

The Consumer Technology Association, a group representing technology companies, commissioned a study suggesting that the U.S. price of cell phones would rise 14%, video game consoles and laptops would each increase 19%. The price of drones would jump 15%.

In its own public comment, the Entertainment Software Association, which represents the video game industry, wrote that: “the imposition of a 10% tariff rate could place these products out of reach for many consumers – let alone a 25% tariff, which would have an even greater impact, likely causing consumers to purchase fewer consoles, controllers and accessories. This is because console makers will be unable to absorb the tariffs.

In August of 2017, the USTR began investigating the practices of the Chinese government. The investigation included policies and action regarding intellectual property, technology transfer and more.

The USTR and the office of President Donald Trump have deemed China’s policies as restricting commerce in the United States and “unreasonable or discriminatory.”

Update: Jan 27, 2:32 p.m. ET with news that the U.S. and and China have reached a "Phase 1" trade deal, which delays tariffs on phones, laptops and consoles, among other things.

The item concerned is a liquid crystal display (LCD) cell. This device will be used as the display within an automobile HVAC control panel. It is used to display information regarding temperature settings, fan speed, defrost and ventilation conditions.

The device concerned is the LCD cell only. This cell does not contain drive circuitry. The drive circuitry is external to the display. This LCD display cell is a passive matrix, single-color, fixed segmented character display with pin connectors.

The applicable subheading for the liquid crystal display (LCD) cell will be 9013.80.7000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Liquid crystal devices not constituting articles provided for more specifically in other headings…: Flat panel displays other than for articles of heading 8528, except subheadings 8528.52 or 8528.62.” The rate of duty will be Free.

Effective July 6, 2018, the Office of the United States Trade Representative imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS.  For additional information see “Notice of Action and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation” (June 20, 2018, 83 F.R. 28710).  Products of China that are provided for in subheading 9903.88.01 and classified in one of the subheadings enumerated in U.S. note 20(b) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by subheading 9903.88.01.

Products of China classified under subheading 9013.80.7000, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty.  At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.01, in addition to subheading 9013.80.7000, HTSUS, listed above.

The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.

Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at https://hts.usitc.gov/current.

A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Steven Pollichino at [email protected]

Washington, DC -The United States Trade Representative (USTR) today announced the next steps in the process of imposing an additional tariff of 10 percent on approximately $300 billion of Chinese imports.

On May 17, 2019, USTR published a list of products imported from China that would be potentially subject to an additional 10 percent tariff.  This new tariff will go into effect on September 1 as announced by President Trump on August 1.

Certain products are being removed from the tariff list based on health, safety, national security and other factors and will not face additional tariffs of 10 percent.

Further, as part of USTR’s public comment and hearing process, it was determined that the tariff should be delayed to December 15 for certain articles.  Products in this group include, for example, cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing.

The Trump administration imposed nearly $80 billion worth of new taxes on Americans by levying tariffs on thousands of products, which is equivalent to one of the largest tax increases in decades. Based on 2021 import levels and country exemptions, the tariffs amounted to a $52.6 billion tax increase in 2021.

The Biden administration has kept most of the Trump administration tariffs in place, except for a five-year suspension of tariffs that were part of a WTO aircraft dispute and replacement of certain steel and aluminum tariffs with tariff rate quotas.

We estimate the tariffs still in effect will reduce long-run GDP by 0.22 percent, wages by 0.14 percent, and employment by 173,000 full-time equivalent jobs.

The Trump administration imposed and threatened several rounds of tariffs, and other countries responded to these measures. Using the Tax Foundation Taxes and Growth Model, we analyze the effects of imposed, threatened, and retaliatory tariffs on the United States economy. Tariffs damage economic well-being and lead to a net loss in production and jobs and lower levels of income. Tariffs also tend to be regressive, burdening lower-income consumers the most.

According to the Tax Foundation model, the tariffs imposed under the Trump administration and remaining in place under the Biden administration will reduce long-run GDP by 0.22 percent ($55.7 billion) and wages by 0.14 percent and eliminate 173,000 full-time equivalent jobs.

Other countries imposed retaliatory tariffs on U.S. exports, which we estimate will further reduce U.S. GDP by 0.04 percent ($9.4 billion) and eliminate 29,000 full-time equivalent jobs.

Economists generally agree free trade increases the level of economic output and income, while conversely, trade barriers reduce economic output and income. Historical evidence shows tariffs raise prices and reduce available quantities of goods and services for U.S. businesses and consumers, which results in lower income, reduced employment, and lower economic output.

Tariffs could reduce U.S. output through a few channels. One possibility is a tariff may be passed on to producers and consumers in the form of higher prices. Tariffs can raise the cost of parts and materials, which would raise the price of goods using those inputs and reduce private sector output. This would result in lower incomes for both owners of capital and workers. Similarly, higher consumer prices due to tariffs would reduce the after-tax value of both labor and capital income. Because higher prices would reduce the return to labor and capital, they would incentivize Americans to work and invest less, leading to lower output.

Alternatively, the U.S. dollar may appreciate in response to tariffs, offsetting the potential price increase on U.S. consumers. The more valuable dollar, however, would make it more difficult for exporters to sell their goods on the global market, resulting in lower revenues for exporters. This would also result in lower U.S. output and incomes for both workers and owners of capital, reducing incentives for work and investment and leading to a smaller economy.

The Trump administration imposed several rounds of tariffs, which we estimated amounted to a total tax increase of nearly $80 billion during the administration. Under the Biden administration, most tariffs have stayed in place except for a suspension of certain tariffs on imports from the European Union and replacement of tariffs with TRQs on steel and aluminum from the European Union and United Kingdom and imports of steel from Japan. Based on 2021 import levels, a total of $52.6 billion of tariffs remains in place.

Note the total revenue generated will be less than what the tariffs generate, because tariffs reduce real income, which offsets some tariff revenue by lowering other tax revenues.

In March 2018, President Trump announced the administration would impose a 25 percent tariff on imported steel and a 10 percent tariff on imported aluminum.

If 2018 imports equaled 2017 levels, the tariffs could have cost U.S. firms nearly $9 billion. For example, the value of imported steel totaled just over $29 billion in 2017. If the 25 percent tariff were levied on the same level of imported steel, the tax would total roughly $7.3 billion. Similarly, if a 10 percent tariff were applied to the $16.8 billion worth of aluminum imported in 2017, the tax would total nearly $1.7 billion. Several countries, however, have been excluded from the tariffs.

Early on, the U.S. reached agreements to permanently exclude Australia from steel and aluminum tariffs, use quotas for steel imports from Brazil and South Korea, and use quotas for steel and aluminum imports from Argentina.

In 2020, President Trump expanded the scope of steel and aluminum tariffs to cover certain derivative products, totaling approximately $0.8 billion based on 2018 import levels.

In August 2020, President Trump announced that the U.S. was reimposing tariffs on aluminum imports from Canada. The U.S. imported approximately $2.5 billion worth of non-alloyed unwrought aluminum, resulting in a $0.25 billion tax increase.

In 2021 and 2022, the Biden administration reached deals to replace certain steel and aluminum tariffs with tariff rate quota systems, whereby certain levels of imports will not face tariffs, but imports above the thresholds will.

TRQs for the European Union took effect January 1, 2022. Based on 2018 import levels, the TRQs will reduce tariff revenue by approximately $1.7 billion.

Though the agreements on steel and aluminum tariffs will reduce the cost of tariffs paid by some U.S. businesses, a quota system similarly leads to higher prices, and further, retaining tariffs at the margin continues the negative economic impact of the previous tariff policy.

Tariffs on steel and aluminum and derivative goods currently remain in place for several countries under the Biden administration and account for $3 billion of the $75 billion in tariff revenue, based on 2018 import values.

The United States is currently imposing a 25 percent tariff on approximately $250 billion of imports from China and a 7.5 percent tariff on approximately $112 billion worth of imports from China.

Under the Trump administration, the United States Trade Representative began an investigation of China in August 2017, which concluded in a March 2018 report that found China was conducting unfair trade practices. The same day, President Trump announced tariffs on up to $60 billion of imports. The administration soon published a list of about $50 billion worth of Chinese products to be subject to a new 25 percent tariff. Stage one of the tariffs began July 6, 2018, on $34 billion worth of Chinese imports, and stage two, the remaining $16 billion, went into effect August 23, 2018. These tariffs amount to a $12.5 billion tax increase.

The Trump administration imposed stage three of Section 301 tariffs in September 2018—10 percent on $200 billion worth of goods from China.This stage was scheduled to increase to 25 percent beginning in January 2019, but the increase was delayed until it was allowed to go into effect in May 2019. Other tariffs threatened on China under the previous administration include:

In August 2019, the administration announced plans to impose a new 10 percent tariff on approximately $300 billion worth of additional Chinese goods beginning on September 1, 2019. The administration followed this announcement with a schedule change and certain exemptions—imposing stage 4a, a 10 percent tariff on $112 billion of imports starting September 1, 2019, and stage 4b, on $160 billion on December 15, 2019.

Then on August 23, the administration decided that stage 4 tariffs would be 15 percent rather than the previously announced 10 percent—stage 4a has taken effect, while stage 4b is scheduled to go into effect on December 15, 2019.

In December 2019, the administration reached a “Phase one” trade deal with China and agreed to postpone indefinitely the stage 4b tariffs of 15 percent on approximately $160 billion worth of goods that were scheduled to take effect December 15 and in early 2020 reduce the stage 4a tariffs from 15 percent to 7.5 percent.

Section 301 tariffs on China currently remain in place under the Biden administration and account for $71 billion of the $75 billion in tariff revenues, based on 2018 import values.

In October 2019, the United States won a nearly 15-year-long World Trade Organization (WTO) dispute against the European Union. The WTO ruling authorizes the United States to impose tariffs of up to 100 percent on $7.5 billion worth of EU goods. Beginning October 18, tariffs of 10 percent were to be applied to aircrafts and 25 percent on agricultural and other products (our estimate uses the average of the two rates).

In January 2018, the Trump administration announced it would begin imposing tariffs on washing machine and solar cell and module imports as the result of a Section 201 investigation.

We estimated the solar cell and module tariffs amount to a $0.2 billion tax increase based on 2018 import values and quantities of four 8-digit Harmonized Tariff Schedule subheadings, given on page 12 of this report. The United States imported 6.8 billion watts worth a value of $4.9 billion in 2018 under the four subheadings. The Biden administration extended the solar panel tariffs at a rate of 14.75 percent on imports above a 5 gigawatt exemption.

We estimated the washing machine tariffs amount to a $0.4 billion tax increase based on 2018 import values and quantities of six 8-digit Harmonized Tariff Schedule subheadings, given on page 8 of this report. The United States imported $1.3 billion worth of machines and $114 million worth of parts in 2018. For most of 2022, a tariff of 14 percent applies to in-quota washing machines and parts and a tariff of 30 percent applies to all subsequent washing machines and parts.

Tariffs on solar panels and washing machines currently remain in place under the Biden administration and account for $0.6 billion of the $75 billion in tariffs revenues, based on 2018 import values.

According to the Tax Foundation model, the tariffs imposed under the Trump administration and left in place under the Biden administration would reduce long-run GDP by 0.22 percent ($56.7 billion) and wages by 0.14 percent and eliminate 173,000 full-time equivalent jobs.

The 0.22 percent reduction in long-run GDP is about 13.5 percent of the total long-run impact of the Tax Cuts and Jobs Act, which we estimated to raise GDP by 1.7 percent in the long run.

Since the tariffs were imposed, imports of affected goods have fallen, even before the onset of the COVID-19 pandemic. Some of the biggest drops are the result of decreased trade with China, as affected imports decreased significantly after the tariffs. Reduced trade means fewer options for U.S. consumers and higher prices.

Note: Steel totals exclude imports from Argentina, Australia, Brazil, South Korea, Canada, and Mexico. Aluminum totals exclude imports from Argentina, Australia, Canada, and Mexico. Beginning in 2022, steel and aluminum imports from the EU and UK will be subject to tariff-rate quotas as well as steel imports from Japan. TRQs will be reflected in the table when 2022 import volumes become available in 2023.

Source: Federal Register notices; Tom Lee and Jacqueline Varas, “The Total Cost of U.S. Tariffs,” American Action Forum, Mar. 24, 2022, https://www.americanactionforum.org/research/the-total-cost-of-tariffs/; data retrieved from USITC DataWeb; author calculations.

Current retaliation against Section 232 steel and aluminum tariffs target more than $6 billion worth of American products for an estimated total tax of approximately $1.6 billion. Tariff revenues for Turkey, India, Russia, and Canada were based on news reports. Mexico, Canada, and the European Union have canceled their Section 232 retaliatory tariffs.

Source: Congressional Research Service, “Escalating U.S. Tariffs: Affected Trade,” last updated Jan. 29, 2020, https://fas.org/sgp/crs/row/IN10971.pdf ; author calculations; tariff announcements.

China has responded to the United States’ Section 301 tariffs with several rounds of tariffs on more than $106 billion worth of U.S. goods, for an estimated tax of nearly $11.6 billion. Note the stage 4b tariffs are not included in the analysis of economic effects due to their cancellation under Phase 1 of the U.S.-China trade deal. The deal also resulted in a reduction of tariffs under Stage 3 and 4a.

Source: Congressional Research Service, “Escalating U.S. Tariffs: Affected Trade,” last updated Jan. 29, 2020, https://fas.org/sgp/crs/row/IN10971.pdf; author calculations.

We estimate the retaliatory tariffs stemming from Section 232 and Section 301 actions total to approximately $13.2 billion in tariff revenues. Retaliatory tariffs, however, are not paid to the United States government, but to the governments of the countries which impose the tariffs, so they do not increase U.S. revenue.

We estimate the retaliatory tariffs will reduce U.S. GDP by 0.04 percent ($9.4 billion) and reduce full-time employment by 29,000 full-time equivalent jobs. Unlike the tariffs imposed by the United States, which raise federal revenue, tariffs imposed by foreign jurisdictions raise no revenue for the U.S. but result in lower U.S. output.

The Biden administration has reached deals to replace steel and aluminum tariffs with tariff rate quotas for the European Union and United Kingdom and steel tariffs with tariff-rate quotas for Japan. The deals also eliminate tariffs on derivative goods from the same jurisdictions and will bring an end to related retaliatory tariffs. The update adjusts revenue and economic estimates for imposed and retaliatory tariffs and adds a new table illustrating how import levels of affected goods have changed since 2017.

Under President Biden, the U.S. will suspend tariffs on aircrafts and other goods from the E.U. under a five-year pause in the ongoing Boeing-Airbus dispute. We have reorganized the layout of the tracker.

U.S. reduces tariffs on $120 billion of Chinese goods by half to 7.5% and China reduces tariffs on approximately $75 billion of US goods in half to 2.5% and 5%.

U.S. postpones indefinitely the scheduled tariff of 15% on $160 billion worth of goods from China and announces plans to decrease the 15% tariff on $120 billion worth of goods from China to 7.5% (date unknown, will be included in the model when the decrease takes effect). China took corresponding measures and canceled their schedule tariff increase.

China announces additional tariffs on $75 billion of U.S. imports, from 5-10%, and will resume tariffs on U.S. cars and car parts suspended earlier in 2019. Tariffs to begin Sept. 1 and end Dec. 15.

U.S. again threatens additional tariffs on Chinese imports if China further retaliates, increasing threats from levies on $200 billion and another $200 billion to $200 billion and $300 billion.

U.S. threatens 5% tariff beginning June 10 on $346.5 billion of imports from Mexico until illegal immigration across the southern border stops. It would rise to 10% on July 1; 15% on Aug. 1; 20% on Sept. 1; and 25% on Oct. 1.

U.S. announces it will raise tariffs on $200 billion of imports from China from 10% to 25%, with threats to impose an additional 25% on $325 billion of goods.

Tax Foundation separated our automobile tariff estimate to show auto imports from Canada, and made slight estimate adjustments to correct for rounding.

U.S. threatens a 10% tariff on $200 billion of Chinese goods if China retaliates for the previous 10% tariff, and that would extend to an additional $200 billion of goods. This would amount to a $40 billion tax increase.

U.S. announces readiness to target an additional $200 billion in Chinese imports, and an additional $300 billion after that—an increase of $100 billion from previous threats.

Prices for big-screen televisions and some household appliances could go up significantly if the Trump administration"s proposed tariffs on Chinese imports are enacted.

"On a $4,000 TV ... the tariffs might have a several-hundred-dollar price impact," said David French, senior vice president for government relations at the National Retail Federation, an advocacy group.

"We"re still assessing the list," French said. "There is machinery involved in consumer goods. ... There are chemicals listed that we believe are components of cosmetics and toiletries."

The Office of the U.S. Trade Representative proposed late Tuesday an additional 25 percent tariff on an extensive list of Chinese imports, valued at $50 billion for the year and ranging from aircraft parts to vaccines. A public hearing on the list is scheduled for May 15, and filing requests to appear and comment are due April 23.

"Some goods won"t be imported at all with a 25 percent tariff, but prices of domestic goods will go up the full amount of the tariff," said Nicholas Lardy, a senior fellow at the Peterson Institute for International Economics in Washington.

But he and other analysts pointed out that for a U.S. economy roughly $18 trillion in size, 25 percent tariffs on $50 billion of Chinese imports will have a relatively small effect overall on consumer prices.

Chinese manufacturer Haier, which acquired GE Appliances in 2016, "only imports a very small number of niche dishwashers designed for small spaces," spokesperson Kim Freeman said in an email to CNBC. "We make about 95 percent of our dishwashers in the U.S. in Louisville, Kentucky."

The National Retail Federation estimates that access to imported goods through free trade agreements boosts the purchasing power of the average American family by $18,000 a year.

"It"s going to be very difficult for the retailer to manage their supply chain in order to handle these tariffs," French said. "Consumers may be price sensitive enough that they may slow their holiday purchases. These may be "Grinch" tariffs."

For a fresh timeline to track key developments affecting bilateral ties between the US and China under the Biden administration, please check our new updating post

In July 2018, US President Donald Trump followed through on months of threats to impose sweeping tariffs on China for its alleged unfair trade practices.

Over the months that have followed since, the two countries have been embroiled in countless back-and-forth negotiations, a tit-for-tat tariff war, introduced foreign technology restrictions, fought several WTO cases, consequently leading US-China trade tensions to the brink of a full-blown trade war.

But finally, on January 15, 2020, the first signs of a truce were seen, when the two sides signed the Phase One Deal, which officially agreed to the rollback of tariffs, expansion of trade purchases, and renewed commitments on intellectual property, technology transfer, and currency practices.

Here, we present a timeline of the major events in the trade conflict, what led up to it, and how the two countries are attempting to deescalate the situation.

China’s Vice Premier Liu He, US Trade Representative Robert Lighthizer, and Treasury Secretary Steven Mnuchin talked trade matters this morning. “The two sides agreed to create conditions and atmosphere to continue pushing forward the implementation of the US-China phase one trade agreement,” according to a statement put forth by the Ministry of Commerce of China.

The office of the US Trade Representative (USTR) also released an announcement, speaking positively on the trade deal. “The parties addressed steps that China has taken to effectuate structural changes called for by the Agreement that will ensure greater protection for intellectual property rights, remove impediments to American companies in the areas of financial services and agriculture, and eliminate forced technology transfer. The parties also discussed the significant increases in purchases of U.S. products by China as well as future actions needed to implement the agreement,” said the USTR.

The US and China have agreed to hold a talk “in the coming days” to review the process of their phase one trade deal, said Gao Feng, the spokesman of Chinese Ministry of Commerce, at a weekly media briefing held online. Gao did not give further details.

However, the same day, the US Trump administration declined there was any plan to talk with China. The office of the US Trade Representative did not respond to queries about plans to review the trade deal. As of this news update, no new meeting date has been scheduled.

Nevertheless, according to White House economic adviser Larry Kudlow, the Trump administration remains engaged with Beijing on the implementation of their trade deal.

The US government announced it would suspend or terminate three bilateral agreements with Hong Kong, covering surrender of fugitive offenders, the transfer of sentenced persons, and reciprocal tax exemptions on income derived from the international operation of ships.

The suspension of the reciprocal tax agreement implies that Hong Kong-registered shipping firms, which derive transport income from the US may be subject to US taxes on their gross income. Markets think this will increase the cost of trade and add uncertainty and anxiety to trade and logistics industries in Hong Kong.

The US and China postponed the review of their phase one trade deal scheduled for August 15, 2020 – roughly half a year after January 15, 2020 when the deal were signed by two countries.

It is unclear about the reason for the postponement of the initial video conference between US Trade Representative Robert Lighthizer, US Treasury Secretary Steven Mnuchin, and Chinese Vice President Liu He. So far, no new date for the review has been announced.

Currently, China’s imports of US agricultural and manufactured goods, energy, and services are well behind on fulfilling the agreed timeline – China has committed to buy at least US$200 billion worth US goods and services during 2020 and 2021. In the first half of 2020, China bought less than a quarter of the annual targeted amount of US goods agreed under the deal, although it has stepped up purchases of US farm and energy products in recent weeks.

The US Customs and Border Protection (CBP) issued a notice requiring that goods produced in Hong Kong and exported to the US must be marked to indicate that their origin is “China” after September 25, 2020. Goods that fail to comply with this rule will face a punitive a duty of 10 percent ad valoremat US ports.

The notice implies that Hong Kong exports to the US may soon face the additional tariffs that US has imposed on Chinese products amid the trade war between the two superpowers. That could lead to additional tariffs of 7.5 to 25 percent for some Hong Kong products entering the US, though the tariff enforcement is not entirely clear yet.

The Office of the US Trade Representative (USTR) has announced 37 exemption lists, which excluded specific Chinese imports from US additional tariffs. However, the exemption rate is not high with 84 percent of the exclusion requests having been rejected by the USTR until January 31, 2020. With the COVID-19 pandemic worsening in the US, the USTR is now prioritizing the review of requests concerning medical products. It is also seeking public comments on whether to remove additional products subject to Section 301 tariffs that are necessary to the US response to COVID-19. For more information, please see our article: US Tariff Exclusion for Chinese Imports: What is the Status?

Bloomberghas reported that the US Department of Agriculture announced that China booked its biggest single-day US corn purchase on July 14, buying 1.762 million metric tons of American corn. The deal eclipsed the previous single-day record sale to China of 1.45 million tons of corn set in 1994. And this is after July 10 when Chinese buyers just purchased 1.365 million tons of US corn. Reuters reported that on July 14, China also booked deals to buy 129,000 tons of soybeans. The trade deals are to meet China’s commitments in the US-China phase one trade deal signed in January this year when Beijing agreed to buy US$80 billion worth US agricultural products in 2020 and 2021.

China’s State Council Customs Tariff Commission announced a new list of 79 US products eligible to be excluded from retaliatory tariffs. The latest list includes US imports of medical disinfectants, rare earth ores, silver and gold ores and concentrates, and some nickel and aluminum alloy products. (Full list can be found here). This tariff waiver will take effect from May 19, 2020 through to May 18, 2021.

This is the fifth list of US items exempted from tariffs issued by China; China has been exempting certain US imports in phases since September last year. Earlier this February, an additional 696 US products (including key agricultural and energy products) were exempted from punitive tariffs – which was seen as a move to kickstart the implementation of the China-US phase one deal signed in January.

According to an announcement made by the USTR, US Treasury Secretary Steven Mnuchin, US Trade Representative Robert Lighthizer, and Chinese Vice Premier Liu He, representatives from the two countries spoke on the phone to pledge their continued support for the phase one trade deal, which took effect earlier this February.

The two sides shared updates on COVID-19 and reflected on the best practice measures they were implementing to provide support to their respective economies.

On the US side, the two Trump cabinet officials said in a joint statement that both sides “agreed that in spite of the current global health emergency, both countries fully expect to meet their obligations under the agreement in a timely manner.”

In confirmation, China’s Commerce Ministry released a statement saying that the two sides agreed to improve the atmosphere for implementation of the phase one deal, which calls for Beijing to boost its purchases from the US by US$200 billion, over two years, compared to the 2017 baseline.

Already, China has ramped up its imports of US pork, purchasing 40,200 tons of meat just in early May, the largest order since October 2019. This comes as US meat output has dropped by more than 30 percent due to slaughterhouse closures under COVID-19.

China’s Tariff Commission unveiled two new lists to exempt some of the US imports from additional Chinese tariffs. The two lists will both be effective for one year from February 28, 2020 to February 27, 2021. List 1 and 2 will exempt 55 and 10 types of US commodities, respectively, including timber, presswork, hydraulic motor, diaphragm pump, aircraft parts, and medical equipment like non-invasive ventilators and temperature sensors.

According to the announcement by China’s Tariff Commission, 696 US commodities will be exempted from Chinese additional tariffs, as the Chinese government seeks to fulfill the commitments made in the trade deal with the US.

From March 2, 2020, the Tariff Commission will accept applications from Chinese companies that intend to sign contracts to purchase and import related goods from the US.

China’s Finance Ministry announced that it will halve tariffs on 1,717 US goods, lowering the tariff on some items from 10 percent to 5 percent, and others from 5 percent to 2.5 percent to take effect February 14, 2020. The tariff cuts will apply to a list of additional tariffs that took effect on September 1, worth US$75 billion.

The announcement reciprocates the US commitment under the Phase One Trade Deal to slash tariffs from 15 to 7.5 percent on US$120 billion worth of goods on the same date.

Crude oil, meat products, and soybean are among products that stand to benefit from the tariff cuts. The reductions will see crude oil tariffs drop from 5 percent to 2.5 percent, soybean tariffs from 30 percent to 27.5 percent, and tariffs on pork, beef, and chicken, drop from 35 percent to 30 percent.

On Wednesday morning, US and China finally signed the long-awaited phase one trade deal at the White House, easing 18-month trade tensions between the world’s two biggest economies.

The Trump administration scrapped tariffs initially set to take effect last month and reaffirmed its commitment to reducing duties from 15 to 7.5 percent on US$120 billion worth of Chinese products. However, the agreement will still leave tariffs on US$250 billion in Chinese products in place.

China, on its part, agreed to purchase at least an additional US$200 billion worth of US goods and services over the next two years – above a baseline of US$186 billion purchases in 2017.

Details on specific product purchases in each of the categories will not be released as both sides feel such disclosure could risk distorting markets.

The phase one deal, which is 96 pages long, also touches upon issues long-disputed by China and the US, such as: intellectual property, technology transfer, currency, and foreign exchange.

The US Treasury Department dropped its designation of China as a currency manipulator, two days before the two sides are due to sign a preliminary trade agreement.

The decision came in the US Treasury’s semi-annual currency report, reversing an unexpected move made by Treasury Secretary Steven Mnuchin last August.

China’s Customs Tariff Commission of the State Council announced Thursday that it had released the second set of US goods to be excluded from the first round of additional tariffs. The exemption will be effective for a year, from December 26, 2019 to December 25, 2020.

Previously, in September, China had announced two lists of goods to be excluded from its first round of counter-tariffs on US products. Tariffs that were already imposed will not be refunded. The Commission also stated that it would not be excluding more US products that were subject to the first round of additional tariffs – for now.

However, the exemption process on US products subject to the second round of additional tariffs will proceed as normal, and new exemption lists will be released in due course.

China and the US announced that they had reached a phase one trade deal Friday, just prior to new tariffs coming into effect on Sunday that would have affected the mass of consumer goods, including popular electronics like smartphones and laptops.

The US has agreed not to proceed with 15 percent tariffs on US$160 billion worth of consumer goods scheduled to take effect December 15, and will reduce the September 1 tariffs on US$120 billion of Chinese goods – halving it from 15 to 7.5 percent. However, the 25 percent tariffs on US$250 billion of Chinese imports will maintain, and further reductions will be linked to progress in future trade negotiations.

China, on its part, has agreed to increase the purchase of US goods and services by at least US$200 billion over the next two years, suspend retaliatory tariffs also scheduled for Sunday, implement intellectual property safeguards, and have a tariff exclusion process in place. It appears that among its potential purchases, China will import US agricultural products worth US$40 billion to US$50 billion – in each of the next two years.

Day 509: November 26, 2019 – US releases new regulatory guidelines for its telecom networks  procedure to protect telecom networks from national security threats

The US Commerce Department has issued a notice introducing a new procedure for identifying, assessing, and addressing transactions that pose a national security risk to its telecommunications network and service supply chain.

The procedure will give the US government power to restrict US companies from importing and using foreign technology in their domestic supply chain infrastructure. According to Secretary Wilbur Ross, whether a transaction will be prohibited or mitigated will be considered on a “case-by-case, fact-specific basis.”

While the document makes no mention of Huawei or ZTE equipment, it might impact the two Chinese companies as they were placed on the US entity “blacklist”, earlier in May, and on Friday, November 22, were voted unanimously as national security risks by the US Federal Communications Commissions.

The US and China have, in principle, agreed to discussing rolling back tariffs on each other’s goods in phases. This will be done in the same proportion and simultaneously, once the two sides sign a “phase one” deal, according to China’s Ministry of Commerce.

Commerce ministry spokesman Gao Feng said on Thursday, November 7, that top negotiators on both sides had held “serious and constructive dis