Trump All-In China commitment news Hebei Longsheng
| Rates Matter More Than Targets For Trump’s All-In China Commitment President Trump has pronounced himself ready to extend duties on Chinese exports to all products, not just the $250 billion currently subject to – or being investigated for – tariffs of 10% to 25%. Extending duties would cover 2,757 product lines (HS-8) worth $261 billion in the 12 months to May 31. By number that’s led by apparel and footwear at 31% of products and $49 billion of value, though electrical and electronics products lead by value at $138 billion. The important issue is the level of duties that will be set. Many companies have indicated that duties rates of 10% are being passed through to customers. It seems unlikely the administration would apply significant rates to the $26 billion of toys imported from China ahead of the holidays. A higher level of duties may be needed to lead contract manufacturers in the electronics industry - phones and laptops are the biggest products not yet touched by tariffs - to change their production centers. Chinese suppliers to Apple, Dell and HP among others exported $46 billion of mobile phones (81% of U.S. phone imports) and $38 billion of laptop computers (94%) to the U.S. in the past year and may not have readily available facilities to shift production to avoid duties.Hebei longsheng Metals and minerals co. ltd. |
