Trump second term plan, news by Hebei Longsheng metals and minerals co., ltd.
| Trump’s second term plan targets tax breaks rather than tariffs in trade policy The U.S. and Chinese governments have agreed that the phase 1 trade deal is proceeding as planned. That reduces, but doesn’t remove, short-term uncertainty over trade policy for the pre-election period. While China’s purchases of agricultural products have surged, shipments of energy and manufactured goods are behind schedule. Indeed, U.S. exports of LNG and crude oil fell by 113% and 14.5% respectively in Q2’20 versus Q2’17, the baseline year for the deal. Looking further ahead, President Trump’s re-election campaign has launched a platform that includes 50 commitments of which six focus on trade. Four of those are specifically targeted at China. Most will be implemented using tax credits and deductions rather than tariffs to encourage the repatriation of manufacturing. At the same time Trump’s plans include "100% expensing deductions for essential industries like pharmaceuticals and robotics" that repatriate jobs from China. Those are curious targets given China represented just 1.5% of robotics imports to the U.S. in the 12 months to June 30 and just 1.6% of pharmaceuticals. There has, however, been a marked increase in pharmaceutical imports from China during the COVID-19 pandemic with seaborne shipments up by 12.5% year over year in the 12 months to July 31. That’s included a 15.9% increase in imports linked to Zhejiang Medicine and a 13.3% rise in imports associated with Humanwell. Not all importers have seen an increase with Huahai Pharma’s imports down by 15.4%. All three will need to decide whether to reorient their supply chains in the event President Trump wins a second term in office. By Hebei Longsheng Metals & Minerals Co,. Ltd. |
