china tarriffs on lcd monitors in stock

WASHINGTON (Reuters) - U.S. President Donald Trump on Tuesday backed off his Sept. 1 deadline for 10% tariffs on remaining Chinese imports, delaying duties on cellphones, laptops and other consumer goods, in the hopes of blunting their impact on U.S. holiday sales.

The delay which, affects about half of the $300 billion target list of Chinese goods - along with news of renewed trade discussions between U.S. and Chinese officials - sent stocks sharply higher and drew cautious relief from retailers and technology groups.

Trump’s 10% tariffs will be effective from Dec. 15 for thousands of products including clothing and footwear, possibly buttressing the holiday selling season from some of the fallout from the protracted trade spat between the world’s two largest economies.

“We’re doing this for Christmas season, just in case some of the tariffs would have an impact on U.S. customers,” Trump told reporters in New Jersey. “Just in case they might have an impact on people, what we’ve done is we’ve delayed it so that they won’t be relevant to the Christmas shopping season.”

The U.S. Trade Representative’s Office announced the decision just minutes after China’s Ministry of Commerce said Vice Premier Liu He conducted a phone call with U.S. trade officials.

Liu agreed with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin to speak again by phone within the next two weeks, the ministry said.

The delay in tariffs on a substantial portion of a $300 billion list of remaining Chinese imports sent U.S. stocks surging, after steep losses in the past week, with the Standard & Poor"s 500up 1.5% and the Nasdaq Compositegaining nearly 2%.

Shares of market bellwether Apple Incsoared 4.2% on news that its core iPhone, tablet and laptop computer products would be spared from tariffs for the time being.

But the Trump administration still plans to impose 10% tariffs on thousands of Chinese food, clothing and other consumer electronics products beginning Sept. 1.

Among these are Chinese-made smartwatches from Apple and Fitbit, smart speakers from Amazon.com Inc, Googleand Apple, and Bluetooth headphones and other devices, a category estimated at $17.9 billion last year by the Consumer Technology Association.

Flat screen televisions from China, a category worth $4.5 billion, also will face 10% tariffs on Sept. 1 after being spared from Trump’s first round of tariffs more than a year ago.

A trade group representative said USTR informed them that it opted to delay tariffs on items where China supplies more than 75 percent of total U.S. imports. Product categories where China supplies less than 75 percent will still face tariffs on Sept. 1, the representative said, speaking on condition of anonymity because the information was not publicly released.

Based on a Reuters analysis, the delay could extend to around half of the $300 billion list of remaining Chinese imports. Chinese imports subject to the tariffs on Dec. 15 totaled about $156 billion last year, according U.S. Census bureau data.FILE PHOTO: U.S. President Donald Trump meets with China"s President Xi Jinping at the start of their bilateral meeting at the G20 leaders summit in Osaka, Japan, June 29, 2019. REUTERS/Kevin Lamarque/File Photo

While most retailers would have stocked their holiday merchandise before the September deadline, some might have faced the tariffs for fill-in orders late in the holiday shopping season.

Still, the Retail Industry Leaders Association said “removing some products from the list and delaying additional 10% tariffs on other products, such as toys, consumer electronics, apparel and footwear, until Dec. 15 is welcome news as it will mitigate some pain for consumers through the holiday season.”

The Consumer Technology Association applauded the delay on some items, but added: “Next month, we’ll begin to pay more for some of our favorite tech devices – including TVs, smart speakers and desktop computers. The administration should permanently remove these harmful tariffs and find another way to hold China accountable for its unfair trading practices.”

The 21-page-list of products that will not get hit with tariffs until December also includes baby monitors and strollers, microwaves, instant print cameras, doorbells, high chairs, musical instruments, ketchup dispensers, baby diapers, fireworks, sleeping bags, nativity scenes, fishing reels, paint rollers and food products.

A separate group of products will be removed from the tariff list altogether, the USTR said, “based on health, safety, national security and other factors.” It did not immediately identify these items.

Trump announced the Sept. 1 tariffs less than two weeks ago, blaming China for not following through on promises to buy more American agricultural products during talks in Shanghai at the end of July. That move was met with a drop in China’s yuan currency a few days later, prompting the Trump administration to declare Beijing a currency manipulator and sending markets tumbling for several days last week.

In a sign the administration may be expecting something in return, Trump tweeted on Tuesday: “As usual, China said they were going to be buying ‘big’ from our great American Farmers. So far they have not done what they said. Maybe this will be different!” Trump tweeted.

Trump’s tariff delay comes amid growing concerns about a global economic slowdown. Goldman Sachs said on Sunday fears of the U.S.-China trade war leading to a recession were increasing and Goldman no longer expects a trade deal between the two countries before the 2020 U.S. presidential election.

Trump has also personally criticized Chinese President Xi Jinping for failing to do more to stem sales of the synthetic opioid fentanyl amid an opioid overdosing crisis in the United States.

Reporting by David Shepardson, David Lawder, Makini Brice and Susan Heavey in Washington; additional reporting by Jeff Mason in Morristown, New Jersey; Writing by David Lawder; editing by Tim Ahmann, Marguerita Choy and Cynthia Osterman

May 10thsees the US-China trade dispute escalating yet again as the US continues to hike tariffs on US$200 billion worth of Chinese imports, going from 10% to 25%.TrendForcepoints out that TVs , monitors, notebooks and other display products were not among the US$250 billion worth of goods hit by the 25% tariffs, thus the current impact on panels and the display industry remains to be fairly limited.

Yet tensions amid the US-China trade war has intensified. China has swiftly responded in retaliation, imposing 5%-25% punitive tariffs of its own on US$60 billion worth of goods on May 13th, Taipei Time. Likewise, the US has released its 4thlist of tariffs, including US$325 billion worth of China exports among the items to suffer 25% tariffs. Notebooks, which make up a sizeable proportion of imports in revenue, are especially deserving of close attention.

The significance of notebook PCs lies in 3 areas, and one should note that not only are the US and China both harmed by the high tariffs, but Taiwan is also caught up in the storm. First of all, nearly 90% of notebook PCs imported to the US are assembled in China, with Chongqing as its main industrial city for these products. Lacking other production bases of similar scale with highly integrated supply chains for flexible procurement, China will suffer a terrible hit in exports should punitive tariffs begin to fly.

Secondly, the North American notebook PC market is highly reliant on domestic brands in the US. According to TrendForce"s global shipment statistics for notebook PC brands 2018, American brands HP, Dell and Apple"s market shares combined comprised up to 66% of the entire North American market. Looking at it from another angle, shipments for the North American market took up 40~50% of total shipments and formed the main source of business for each of the three giants. If tariffs are imposed on notebook PCs, American brands will begin to lose competitive power due to elevated costs from tariffs, impacting both business and profits. If the tariffs reflect themselves in the end prices for notebook PCs, then there will be good reason to worry whether the North American market, which comprises up to a third of global notebook PC shipments,will suffer from a stifled sales momentum. Should that come to pass, it shall be mayday for both American notebook PC brands and the global notebook market.

Lastly, Taiwan"s suppliers have long accumulated competitive power in and concentrated on notebook PC manufacturing. The three aforementioned American brands all depend 90% on Taiwan"s suppliers. If punitive tariffs become unavoidable, Quanta, Compal and Wistron may become another center of impact in this disaster . Some notebook PC ODMs have expanded their production capacities in Vietnam, Taiwan and other locations outside China since 2018 in an attempt to minimize the potential impacts from tariffs. Although the change in places of production may circumvent the tariffs, notebook PC supply chains have long been situated in China. Shipping the relevant upstream components to new plants overseas of China will incur additional fees and time costs, thus leading to an inevitable overall increase in cost despite the tariff work-around.

In TV markets, having TVs made in Mexico and shipped to America for sale have always been the business model for years under considerations of tariff-related incentives and logistic costs. Taking the current top four TV brands by market share for example, we see that Samsung and LG have enormous production capacities in Mexico, allowing the two Korean manufacturers to circumvent the towering tariffs on China imports with ease, thanks to the additional resources at hand.

In contrast, Chinese brand TCL, catapulted by sharp price strategies, and Vizio are still highly reliant on China manufacturers for production. Although TCL possesses some capacity in Mexico, it is only enough for 50% of US demand. That is to say, once TVs are included in the list of products to suffer punitive tariffs, a reshuffling of brands by brand strength and market shares shall ensue.

All the information, data and documents are provided by ETCN only for your reference. ETCN promises to collect and edit them in due care but shall not be liable for their correction and accuracy. In case of any discrepancy, official versions and interpretations shall prevail.

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.

The discovery of a Chinese surveillance balloon floating over the United States has added to the rising tensions between the two superpowers.Tensions Rise:In the aftermath of the U.S. downing of a Chinese spy balloon on Feb. 4 and three unidentified flying objects a week later, the nations have traded accusations over their spying programs.

Biden’s Remarks:President Biden, seeking to calm tensions over Chinese aerial spy, said that the latest objects shot down were not tied to Beijing and announced that he planned to speak with President Xi Jinping to keep lines of communication open.

China’s Reaction:Beijing has tried to play down the balloon incident, but that is getting harder to do as alarm and accusations mount. At home, China has sought to cast the controversy as a symptom of U.S. decline.

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.

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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.

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.

The United States Trade Representative office said Tuesday that new tariffs on certain consumer items would be delayed until Dec. 15, while other products were being removed from the new China tariff list altogether. It cited health and security factors.

The USTR said the delay affects electronics including cellphones, laptops and video game consoles and some clothing products and shoes and "certain toys."

The USTR did not specify which items will be removed from the list but said it will conduct an "exclusion process for products subject to additional tariff."

Trump said Tuesday his decision to delay tariffs ahead of the Christmas season was to avoid an impact on holiday shopping. Additionally he said all of the delays "help a lot of people."

Separately, China"s Commerce Ministry said Vice Premier Liu He had spoken by phone with U.S. Trade Representative Robert Lightizer and Treasury Secretary Steven Mnuchin and they agreed to talk again in two weeks.

Uncertainty around the trade war has weighed on the markets. U.S. stocks had their worst day of the year on Aug. 5, when China let its currency weaken, crossing the 7 yuan-per-dollar threshold and said it would halt imports of agricultural goods from the U.S.

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 USTR will publish on its website today, and in the Federal Register as soon as possible, additional details and lists of the tariff lines affected by this announcement.

Correction: An earlier version misstated how cellphones would be affected by the USTR announcement. The office says tariffs on cellphones are being delayed.

The United States Trade Representative (USTR) said "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." It added that the remaining tariffs on "cell phones, laptop computers, video game consoles, certain toys, computer monitors and certain items of footwear and clothing," will be delayed until Dec. 15.

The duties had been set to go into effect on Sept. 1, so the announcement eased concerns about the Christmas shopping season. Apple is expected to release its new version of the iPhone in September, shortly after the tariffs were to go into effect. The company has not said whether or not it would increase the price of the iPhone or absorb the costs.

Apple shares fell 2% on Aug. 1 after President Donald Trump announced that effective next month, the U.S. was adding a 10 percent tariff on the remaining $300 billion in Chinese goods that had not faced duties.

Apple warned in June that the tariffs would affect all of its major products produced in China, including iPhone, iMac and iPads. Trump said in July that Apple would not be given tariff waivers or relief for Mac Pro parts made in China. "Make them in USA, no Tariffs!" Trump said.

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In a broad-ranging review of retail, UBS advised that auto parts, electronics, and furniture retailers are likely to get the biggest boost from a potential shift in tariff policy from the Biden administration.

On the fourth anniversary ofthe initial set of China tariffs under the Trump administration on July 6, rumors of potential changes to China tariff strategy are increasingly percolating through news and social media. Early on Wednesday, former deputy director at the National Economic Council Clete Williams said a relief package on the trade barriers is likely to come “pretty soon”.

Ahead of this expected action, a team of analysts at UBS compiled a list of companies across the retail space that are likely to be most or least impacted by changes.

The retail space was homed in on based upon its less strategic tilt and the likelihood that it would be first in line for tariff amendments should they come to fruition. The bank’s analysts suggested categories like apparel, home furnishings, and sporting goods are likely to be least controversial

“We believe that retailers such as Best Buy (BBY), Bed Bath & Beyond (BBBY), and Williams-Sonoma (WSM) likely source at least 35% of their goods from China (indirectly and directly),” the research report noted. “These stand to be beneficiaries of any changes.”

In line with Williams-Sonoma (WSM), both RH (RH), Wayfair (W), and Floor & Decor Holdings (FND) are expected to benefit as each sources 30% or more of their products from China. However, the research suggested that both Floor & Decor (FND) and Wayfair (W) will have trouble hanging on to elevated prices that could keep the benefit from tariff shifts in-house.

Yet, among the stocks pinpointed as the largest beneficiaries were auto parts retailers like Advance Auto Parts (NYSE:AAP), AutoZone (NYSE:AZO), and O’Reilly Automotive (NASDAQ:ORLY). The research suggested that the rollback of tariffs would ease pressures on the 20-40% of goods sourced from the region while the retailers likely maintain elevated prices for consumers.

Elsewhere, Dollar Tree (DLTR) is likely to benefit given it sources about 30% of its products from China. Its recent upping of price to $1.25 is likely to remain sticky in the bank’s view, adding tariff savings directly to the bottom line. Dollar General (DG), by contrast, is estimated to source only 5% of its product from China.

The U.S. announced it will not impose a 10% tariff on certain Chinese products starting Sept. 1 and is pushing back planned duties on a range of popular consumer goods, sending stock markets surging.

"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," the Office of the U.S. Trade Representative said Tuesday. The agency did not specify which items would be stricken from the list.

Tariffs on other items will be delayed until Dec. 15, the USTR said. That leaves time for items to be shipped to the U.S. ahead of the holiday rush. Those items include cell phones, laptops, video game consoles, computer monitors, holiday lights and some types of toys, shoes and clothing. President Trump specifically linked the delay at least in part to holiday shopping.

"We"ve delayed it so it won"t be relevant for the Christmas shopping season," President Donald Trump told reporters as he left for Pennsylvania Tuesday.

"Clearly, the administration understands the importance of avoiding higher taxes on American families during the holiday season. Still, continued uncertainty for U.S. businesses and consumers is a drag on the economy," said David French, senior vice president for government relations for the National Retail Federation. He reiterated the group"s opposition to using tariffs as a tactic to change China"s approach.

U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin held discussions with Chinese Vice Premier Liu He on Tuesday morning, a spokesperson for the USTR said. Another call will take place in two weeks, the spokesman said.

Economists at Goldman Sachs on Sunday lowered their economic forecasts, citing the impending tariffs on consumer goods. Bank of America Merrill Lynch recently raised their odds of a recession in the next year to roughly 33%, up from about 20%.

"We are worried," Michelle Meyer, Bank of America Merrill Lynch"s head economist, wrote in a note on Friday. "We now have a number of early indicators starting to signal heightened risk of recession."

New U.S. tariffs on China have increased uncertainty for businesses, which experts say could cause them to curb hiring and investing in new equipment. Mr. Trump"s duties on Chinese goods have also pushed stock prices lower, which could depress spending by wealthier Americans, Goldman said.

While stocks of retailers and some consumer goods including Apple, Best Buy and Mattell rose on the news, some retail groups reiterated they oppose the use of tariffs as a way to negotiate with China on trade.

"Rebalancing" trade with China is "of critical importance, but taxing U.S. companies, U.S. consumers, and the U.S. economy is not the way to achieve that goal," said Rick Helfenbein, CEO of the American Apparel & Footwear Association said in a statement.

That was a sentiment echoed by Naomi Wilson, senior director of policy for the Information Technology Industry Council, a group representing technology companies in Washington.

"While we appreciate the delay, tariffs – even the threat of tariffs -- hurt consumers, rattle markets, disrupt supply chains, increase costs, and create uncertainty across economies," Wilson said. She urged the administration to stop "creating an environment of extreme uncertainty."

"The three-month delay to the imposition of tariffs on more than half of the $300 [billion] of Chinese imports, originally scheduled to take effect next month, is obviously designed to avoid a politically damaging rise in consumer prices ahead of the holiday season," Andrew Hunter of Capital Economics said in a report. "It should not be misinterpreted as a sign that trade tensions are easing."

The United States is delaying tariffs on Chinese-made cellphones, laptop computers and other items and removing other Chinese imports from its target list altogether in a move that triggered a rally on Wall Street.

The Office of the U.S. Trade Representative said Tuesday that it is still planning to go ahead with 10% tariffs on about $300 billion in Chinese imports, extending the import taxes on just about everything China ships to the United States in a dispute over Beijing’s aggressive trade policies. Most of the levies are scheduled to kick in Sept. 1.

But the agency says it would delay the tariffs to Dec. 15 on some goods, including cellphones, laptop computers, video game consoles, some toys, computer monitors, shoes and clothing. And it’s removing other items from the list based “on health, safety, national security and other factors.”

The news sent the Dow Jones Industrial Average up more than 460 points in midmorning trading. Shares of Apple, Mattel and shoe brand Steve Madden shot up on the news.

Separately, China’s Ministry of Commerce reported that top Chinese negotiators spoke by phone with their U.S. counterparts, Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin, and plan to talk again in two weeks.

Together, the developments revived optimism that the world’s two biggest economies can make progress toward resolving a trade dispute that has rattled financial markets for more than a year and clouded prospects for the global economy.

The U.S. and China are fighting over American allegations that Beijing steals trade secrets and forces foreign companies to hand over technology. The tactics are part of China’s drive to become a world leader in advanced technologies such as artificial intelligence and electric cars.

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Otherwise, without such Approval, even if the goods have arrived at the China Customs, they will not be cleared normally, and the goods will be detained in the port till get such approval, or even be returned, causing you huge losses.

On 4 April 2018, China requested consultations with the United States concerning certain tariff measures on Chinese goods which would allegedly be implemented through Section 301-310 of the US Trade Act of 1974.

On 13 April 2018, the United States requested the Chair of the DSB to circulate to Members a communication where it indicated that the United States was willing to enter into consultations with China, without prejudice to the US view that China"s letter of 4 April 2018 did not satisfy the requirements of Article 4 of the DSU. On 25 April 2018, China requested the Chair of the DSB to circulate to Members a communication responding to the United States" communication of 13 April 2018. While disagreeing with the US view that China"s letter of 4 April 2018 did not satisfy the requirements of Article 4 of the DSU, China indicated its willingness to schedule a mutually convenient date for consultations within the scope of China"s request.

On 6 July 2018, China requested additional consultations that supplemented its consultations request of 4 April 2018. China referred to the publication by the United States on 15 June 2018 of a list of products of Chinese origin to be subject to an ad valorem duty of 25% imposed by the United States on the importation of certain Chinese products, since 6 July 2018. China maintained that these duties were only applied to China"s products and in excess of the United States" bound rates.

On 16 July 2018, the United States requested the Chair of the DSB to circulate to Members a communication referring to China"s 6 July 2018 supplement to its consultations request of 4 April 2018. The United States also referred to certain additional duties imposed by China on the importation of certain products from the United States.

On 16 July 2018, China requested additional consultations that supplemented its original consultations request of 4 April 2018 as well as its supplemental request of 6 July 2018. China referred to the publication by the United States on 10 July 2018 of a list of products of Chinese origin to be subject to an ad valorem duty of 10% to be imposed by the United States on the importation of certain Chinese products . China maintained that these duties were only to be applied to China"s products and in excess of the United States" bound rates.

On 26 July 2018, the United States requested the Chair of the DSB to circulate to Members a communication referring to China"s 16 July 2018 supplement to its consultations request. The United States indicated that the United States was willing to enter into consultations with China, without prejudice to the US view that China"s letter of 4 April 2018 did not satisfy the requirements of Article 4 of the DSU. The United States also referred to certain additional duties that China announced it would impose on the importation of certain products from the United States.

On 18 September 2018, China requested additional consultations that supplemented its original consultations request of 4 April 2018 as well as its supplemental requests of 6 July 2018 and of 16 July 2018. On this occasion, China referred to the publication by the United States on 17 September 2018 of a list of products of Chinese origin to be subject to an ad valorem duty of 10% from 24 September 2018 and of 25% from 1 January 2019. China maintained that these duties were only to be applied to China"s products and in excess of the United States" bound rates.

On 28 September 2018, the United States requested the Chair of the DSB to circulate to Members a communication referring to China"s 18 September 2018 supplemental consultations request. The United States indicated that it was willing to enter into consultations with China, and referred to certain additional duties on the importation of products from the United States that China had announced on 18 September 2018.

On 6 December 2018, China requested the establishment of a panel. At its meeting on 18 December 2018, the DSB deferred the establishment of a panel.

At its meeting on 28 January 2019, the DSB established a panel. Brazil, Canada, the European Union, India, Indonesia, Japan, Kazakhstan, Korea, New Zealand, Norway, the Russian Federation, Singapore, Chinese Taipei and Ukraine reserved their third-party rights.

On 24 May 2019, China requested the Director-General to compose the panel. On 3 June 2019, the Director-General composed the panel. Following the resignation of a panelist on 25 September 2019, and further to a request from China, the Director-General on 17 October 2019 appointed a new panelist.

On 9 April 2020, the Chair of the panel informed the DSB that based on the timetable agreed between the parties and the panel, the panel expected to issue its final report to the parties by the end of June 2020. The Chair apprised the DSB that the report would be available to the public once it was circulated to the Members in all three official languages, and that the date of circulation depends on completion of translation.

This dispute concerns China"s challenge to the additional duties that the United States imposed on certain products from China. The United States imposed these additional duties pursuant to the findings of a Section 301 Report addressing China"s practices related to technology transfer, intellectual property, and innovation, which the United States considers to be unfair and distortive policies of “state-sanctioned theft”, misappropriation of US technology, intellectual property, and commercial secrets.

the additional duties on a second set of products with an approximate annual trade value of USD 200 billion (List 2), initially imposed in September 2018 at 10% and subsequently raised in May 2019 to 25%.

that by engaging in bilateral negotiations to address several trade concerns — including some matters covered by this dispute — the parties had decided to settle their dispute outside the WTO, and thus reached a “settlement of the matter” within the meaning of the third sentence of Article 12.7 of the DSU; for that reason the Panel should confine its report to a brief statement of the facts and a notation that a settlement has been reached; and

that, in any event, the additional duties were justified under Article XX(a) of the GATT 1994, as measures necessary to protect US public morals. The United States argued that China"s acts, policies, and practices addressed in the relevant Section 301 Report amounted to “state-sanctioned theft” and misappropriation of US technology, intellectual property, and commercial secrets, and this violated the public morals prevailing in the United States.

The Panel recognized that an ongoing bilateral process was taking place between China and the United States. However, the Panel observed that this bilateral process seemed to be parallel to the panel proceedings, and not intended, by China at least, to replace them. The Panel found that the parties had not reached a settlement of the matter within the meaning of the third sentence of Article 12.7 of the DSU

The Panel found that the challenged additional duties were prima facie inconsistent with Article I:1 of the GATT 1994 because they applied only to products from China; and prima facie inconsistent with Article II of the GATT 1994, because they were applied in excess of the rates to which the United States bound itself in its Schedule of Concessions.

With respect to the United States" defence under Article XX(a) of the GATT 1994, the Panel adopted a holistic approach to determining whether the measures at issue were “necessary to protect public morals”. This approach involved an overall assessment based on the Panel"s interpretation of each element of Article XX(a) and on its application to the specific facts of this dispute. Following this holistic approach, the Panel refrained from reaching any intermediate conclusions before completing the entire analysis of whether the measures could be shown by the United States to be provisionally justified.

With respect to the identification of the public morals objective invoked by the United States, the Panel observed that the “standards of right and wrong” invoked by the United States (including norms against theft, misappropriation and unfair competition) could — at least at a conceptual level — be covered by the concept of “public morals” in Article XX(a).

With respect to the necessity of the measures, the Panel focused its analysis on the United States" explanation of how the specific measures that it chose to impose, i.e. additional duties on a wide range of selected products from China, contributed to the public morals objective invoked. The Panel directed its enquiry towards seeking to identify the nexus between the measures the United States had chosen and the US public morals concerns, in order to inform the examination of the question of whether and how the measures contributed, and could therefore be demonstrated to be “necessary”, to protect public morals within the meaning of Article XX(a).

Regarding the imposition of additional duties on List 1 products, the Panel found that the United States had not provided an explanation demonstrating a genuine relationship of ends and means between the imposition of additional duties on these products and the public morals objective invoked by the United States. The Panel found, in particular, that the United States had not provided evidence in support of its assertion that the products on which it imposed additional duties benefitted from practices of China that the United States considered to be contrary to its public morals, nor evidence that would more generally demonstrate how the additional duties it applied to selected products otherwise contributed to its public morals objective.

Regarding the imposition of additional duties on List 2 products, the Panel found that the United States had not provided an explanation that would allow the Panel to understand an “ends and means” relationship between the additional duties on List 2 products and the public morals objective invoked by the United States.

In summary, the Panel concluded that the United States had not provided an explanation demonstrating how the imposition of additional duties on the selected imported products in List 1 and List 2 was apt to contribute to the public morals objective invoked, and, following on from that, how they were necessary to protect public morals. The Panel found, accordingly, that the United States had not met its burden of demonstrating that the measures are provisionally justified under Article XX(a).

The Panel Report contains additional “Concluding Comments” emphasising the Panel"s awareness of the wider context in which the WTO system currently operates, which was “one reflecting a range of unprecedented global trade tensions”. The Panel pointed out that its role was not to draw any legal conclusions or make recommendations on any matters other than those it had been specifically tasked to deal with. In this connection, the Panel recalled that the Government of the United States had not, up to the present time, initiated action under the WTO DSU with respect to measures that China had imposed in response to the United States measures at issue in this dispute. The Panel emphasized that it had sought to perform diligently its adjudicatory role under Article 11 of the DSU in relation to the matters that fell within its terms of reference. Finally, the Panel expressed its encouragement to the parties to continue to work for a mutually agreed solution to the matters raised in the dispute.

On 26 October 2020, the United States notified the DSB of its decision to appeal to the Appellate Body certain issues of law and legal interpretations in the panel report.

Importing computer parts from China is profitable and very popular among US importers. China is an economic juggernaut on the world stage, and the constantly evolving technology sector is thriving in Asia. Regardless of increased taxes, China is still an incredibly viable option for any importer of computer parts.

Importing computer parts from China may require Federal Communications Commission (FCC) certification due to emitted electronic signals. In most cases, FCC certification applies to finished parts rather than components. Also, Chinese computer parts fall under section 301 tariff regulations to help offset the cost of goods.

In the world of electronic components and the various accessories that go along with them, China is a world leader in terms of manufacturing and production. According to the World Publication Review, “China is the largest manufacturing economy in the world.”

Chinese manufacturing accounts for over 28% of the world"s total manufacturing production. So it’s no wonder the bulk of computer parts originate in China. However, China cannot manufacture all these components themselves, so some outsourcing is required during production.

China has numerous manufacturers and suppliers that produce and distribute computer parts worldwide. Everything from mice and keyboards to audio and video cards to hard drives and cables. Amazing deals on these components are only an import container away.

Although China currently does not manufacture its own microprocessor chips, often referred to as central processing units (CPUs). A company called HiSilicon, owned by Huawei in Guangdong, is working on developing its own CPUs to enter the market.

China is investing in making itself technology independent as part of a greater initiative set by Chinese president Xi Jinping. The focus is to make China the leader in both technology and the sciences as it relates to economics.

American, South Korean, and Taiwanese companies like Intel, Samsung, and TSMC produce and sell chipsets to China. These are secured to circuit boards made in China and then exported again worldwide.

It is important to note that TSMC is the leading supplier of chips to some of the world"s largest manufacturers of computers, graphics cards, and more. Industry giants like Apple, AMD, and Nvidia rely heavily on chips from Taiwan to make their products in China.

Companies like Apple have a long history of manufacturing their computers, phones, tablets, and accessories in China. This partnership is due to the incredible cost savings from labor, efficiency, and good working history.

Regardless of this exchange, the Chinese wish to have zero reliance on the global economy, produce solely for themselves, and sell their goods worldwide. This course of action would solidify them as the world"s definitive economic leader.

Currently, in China, a wide range of computer parts and accessories are available for import into the US. Most of the world’s computer parts and accessories originate from Chinese development and manufacturing.

As mentioned earlier, China does not currently mass-manufacture any microprocessors or their components. Three components make up a CPU, and they are:

Processor Casing: This encases the processor cores and the die. Exterior contacts are designed to match that of the motherboard so that it can connect and execute processes.

One of the biggest mistakes people often make is assuming that the term computer refers to a desktop or laptop. This statement is so incredibly false. A computer is any kind of electronic device that can compute operations and commands. So what does this mean exactly?

It means that devices like tablets, smartphones, smart TVs, and more make up the computer parts category. Most electronics today use components found inside a computer. They are just shrunk down to fit inside the device"s casing.

The list above is a small snapshot of devices that use computer parts to function and operate their tasks. With current technology, computer parts can be shrunk to unimaginable sizes, perform with little to no cooling, and operate virtually silently.

Computer parts production in China is at an all-time high. With strategic partnerships worldwide but mainly in the US, the Chinese have established themselves as a major exporter of this technology.

The computer parts industry is vast and has expanded over the years into other business sectors. Now in the common era, devices pop up every day with a new smart version of themselves. These promise to improve how we use that device and how it functions.

As an importer of computer parts, you can see the value proposition in terms of cost thanks to China’s low labor cost and production standards. Speaking with a customs consultant when you are planning to import will equip you with the confidence to stay ahead of the curve.

Computer parts really are a blanket term when thinking about advanced technologies. The product category covers everything that makes up a computer and allows it to function. However, as it was discussed in the previous section, computer parts make up more than just traditional computers.

The one constant in the computer market is the parts themselves. Regardless of change or adaptation, these parts remain the same in how they connect and what they do for a computer. The only differences that come with improvements are performance and efficiency.

The table illustrates how massive the computer parts and accessories trade is between the US and China. Some or all of these components are also used in other technologies besides a traditional desktop, laptop, tablet, or smartphone.

Central Processing Unit (CPU): The CPU, which is the central brain of a computer, is where every single process and executable command on a computer originate.

Random Access Memory (RAM): The RAM is the place where data sits while being used by applications or programs running in the background. The more RAM that is available, the more stable the environment on your computer.

Power Supply Unit (PSU): The PSU is what gives each part of the computer power to function. Computers will require varying degrees of power based on the components inside. A computer with a powerful GPU will require additional wattage.

Graphics Processing Unit (GPU): Although China does not make the GPU silicon, they import them into China to attach to boards they manufacture. These devices push graphical performance and fidelity on a computer.

Cables and Cooling: For the various components of a computer to function and communicate, they need a way to connect with each other. Cables are the way this is achieved. Cooling through fans or liquid reservoirs keeps everything from overheating.

Mouse: The mouse goes hand in hand with the keyboard for input. The mouse is the direct way to interact with programs and other light applications on a computer that doesn’t have touch capability.

Monitor: The monitor or display is the primary viewing device on a computer. In the past, only one monitor was needed for daily computing. However, most people today operate with more than one at their desk or terminal.

The components above are always in high demand here in the US. As an importer of these goods, there is a tremendous value and savings associated with these products. In the past, products from China were always tagged commonly as cheap or lacking in quality.

This idea is directly tied to the incredibly cheap labor pool and mass market output. However, technological advancements and quality control have changed that narrative over the years.

Chinese computer parts and accessories are manufactured and produced to compete with the top manufacturers of the world"s market. China has changed the game for importers, and they are producing higher volumes of parts and accessories at a cheaper rate.

It is important to secure a reliable trade partnership in any overseas venture. Maintaining an adequate and reliable supply chain is important for any business. This statement is especially true when a particular commodity is only available overseas.

Fortunately, the US is China’s biggest trade partner in the global community. The US is still negotiating future investment treaties with China, which will undoubtedly open additional doors with Chinese businesses should these investments prove promising.

When you are doing business in foreign countries and trying to establish lasting relationships, you must familiarize yourself with their customs and etiquette. You will get more out of doing business in China if you adhere to good business practices.

The Chinese appreciate modesty and patience above all else while also being polite and respectful. The emphasis on personal business relationships is a hallmark of how the Chinese do business.

Our experienced customs brokers have a wide breadth of manufacturer information to aid in identifying potential partnerships and finding a supplier overseas. Our industry experts steer your import business in the right direction when it comes to dealing with Chinese suppliers and manufacturers.

When importing goods directly from China, federal agencies strictly enforce various regulations depending on the commodity. A customs consultant can identify which agencies regulate your imported goods.

The US CBP is the federal body that governs and oversees all goods being brought into the US. It is their responsibility to ensure that the laws and safety measures of the US are respected and adhered to when goods enter the country.

The FCC is involved since computer parts are designated as electronics. All computer parts must acquire FCC certification before arriving at a coastal port. Both the CBP and FCC have standard documentation requirements. The CBP may request more specific documentation for new products entering customs for the first time.

Whenimporting computer parts directly from China, it’s essential to familiarize yourself with the international Harmonized System (HS). The HS code is an export and import classification system managed by the World Customs Organization (WCO).

This six-digit code system identifies, classifies, and assigns taxes and duties while tracking statistics. Additional digits further expand codes up to ten digits to create a Harmonized Tariff Schedule (HTS) code used for both classification and exact taxes.

Navigating and importing the latest in computer parts can seem daunting. USA Customs Clearance has a dedicated team of consultants and licensed customs brokers with decades of combined experience.

Our team of consultants and brokers put their skill and care to the test to best meet your needs. The team provides world-class support services to assist the import process when dealing with Chinese suppliers and manufacturers.

Whether you are familiar with importing or new to the process, our services take out the stress and reduce the risk of making mistakes that can cost you time and money. Give yourself peace of mind and let the professionals handle your imports with an unmatched white glove service.

You can click for more information or call us at (855) 912-0406 and start shipping and importing with the best and most reliable consultants and brokers in the industry.

Washington, DC – As part of the United States’ continuing response to China’s theft of American intellectual property and forced transfer of American technology, the Office of the United States Trade Representative (USTR) today released a list of approximately $200 billion worth of Chinese imports that will be subject to additional tariffs.  In accordance with the direction of President Trump, the additional tariffs will be effective starting September 24, 2018, and initially will be in the amount of 10 percent.  Starting January 1, 2019, the level of the additional tariffs will increase to 25 percent.

The list contains 5,745 full or partial lines of the original 6,031 tariff lines that were on a proposed list of Chinese imports announced on July 10, 2018.  Changes to the proposed list were made after USTR and the interagency Section 301 Committee sought and received comments over a six-week period and testimony during a six-day public hearing in August.  USTR engaged in a thorough process to rigorously examine the comments and testimony and, as a result, determined to fully or partially remove 297 tariff lines from the original proposed list.  Included among the products removed from the proposed list are certain consumer electronics products such as smart watches and Bluetooth devices; certain chemical inputs for manufactured goods, textiles and agriculture; certain health and safety products such as bicycle helmets, and child safety furniture such as car seats and playpens.

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.

After separate notice and comment proceedings, in June and August USTR released two lists of Chinese imports, with a combined annual trade value of approximately $50 billion, with the goal of obtaining the elimination of China’s harmful acts, policies and practices.  Unfortunately, China has been unwilling to change its policies involving the unfair acquisition of U.S. technology and intellectual property.  Instead, China responded to the United States’ tariff action by taking further steps to harm U.S. workers and businesses.  In these circumstances, the President has directed the U.S. Trade Representative to increase the level of trade covered by the additional duties in order to obtain elimination of China’s unfair policies.  The Administration will continue to encourage China to allow for fair trade with the United States.

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.

WASHINGTON (Reuters) - U.S. President Donald Trump on Tuesday backed off his Sept. 1 deadline for 10% tariffs on remaining Chinese imports, delaying duties on cellphones, laptops and other consumer goods, in the hopes of blunting their impact on U.S. holiday sales.

The delay which, affects about half of the $300 billion target list of Chinese goods - along with news of renewed trade discussions between U.S. and Chinese officials - sent stocks sharply higher and drew cautious relief from retailers and technology groups.

Trump’s 10% tariffs will be effective from Dec. 15 for thousands of products including clothing and footwear, possibly buttressing the holiday selling season from some of the fallout from the protracted trade spat between the world’s two largest economies.

“We’re doing this for Christmas season, just in case some of the tariffs would have an impact on U.S. customers,” Trump told reporters in New Jersey. “Just in case they might have an impact on people, what we’ve done is we’ve delayed it so that they won’t be relevant to the Christmas shopping season.”

The U.S. Trade Representative’s Office announced the decision just minutes after China’s Ministry of Commerce said Vice Premier Liu He conducted a phone call with U.S. trade officials.

Liu agreed with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin to speak again by phone within the next two weeks, the ministry said.

The delay in tariffs on a substantial portion of a $300 billion list of remaining Chinese imports sent U.S. stocks surging, after steep losses in the past week, with the Standard & Poor"s 500up 1.5% and the Nasdaq Compositegaining nearly 2%.

Shares of market bellwether Apple Incsoared 4.2% on news that its core iPhone, tablet and la