Trump leaves currency conundrum, tariffs for Biden, news by Hebei Longsheng
| Life After the Elections: Trump leaves currency conundrum, tariffs for Biden The U.S. Treasury Department has declared Vietnam and Switzerland to be currency manipulators as part of a long-delayed review. Importantly, China is not designated as a manipulator, reducing the risk that President Trump cancels the phase 1 trade deal. In the case of Switzerland, most of the increase in the U.S. trade deficit, which reached $56.8 billion in the 12 months to Oct. 31, has been down to a $26.9 billion increase in the precious metals and gems deficit. A period of consultation required under U.S. law will likely leave President-elect Biden to decide what to do vis-a-vis Switzerland. In the case of Vietnam, President Trump may act sooner given the ongoing section 301 review of Vietnam’s currency and timber practices. The tariff approach used in the case of the Trump administration’s section 301 review of China may provide some clues as to which Vietnamese products may be hit by tariffs. When looking at products that were covered by "list 2" in the Chinese case – focused on industrial supplies – Panjiva’s data shows total imports from Vietnam rose by 84.3% year over year due to a jump in imports of electronic circuits and solar panels. For "list 3" equivalent products, including finished industrial and some labor-intensive consumer goods, the increase was 87.3%, led by imports of furniture worth $5.80 billion. Given the sector’s scale and the connection to the timber industry it appears likely that furniture will be the most likely target for tariffs and may impact upon shipments linked to Raymours, La-Z-Boy and Ikea among others whose import growth has accelerated in November. By Hebei Longsheng Metals & Minerals Co,. Ltd. |
