Next Round of $200B in U.S. Tariffs Has a Ton of Promo Implications, Upsets China Further
In response to China's retaliatory tariffs, the U.S. Trade Representative proposed a modification of the U.S.'s initial tariff list, adding an additional 10 percent duty on products of China with "annual trade value of approximately $200 billion."
The list is extremely lengthy, and features a lot of raw manufacturing materials and food products. But it also includes a good amount of products that directly relate to the promotional products space, such as headwear, cotton and sport bags, as well as items tangentially related to the industry, like fruit, leather goods and machinery.
"In light of China's response to the $50 billion action announced in the investigation and its refusal to change its acts, policies and practices, it has become apparent that U.S. action at this level is not sufficient to obtain the elimination of China's acts, policies and practices covered in the investigation," the USTR said in the document. "Modification of the action in this investigation by taking a supplemental $200 billion action is appropriate in light of the statutory goal of obtaining the elimination of acts, policies and practices covered in the investigation. China has shown that it will not respond to action at a $50 billion level by addressing U.S. concerns with China's acts, policies and practices involving technology transfer, intellectual property and innovation. Rather, China is responding to action at a $50 billion level by imposing retaliatory duties. Supplemental action at a $200 billion level is in accord with the President's direction."
At this point, one can't forget President Trump's words in March, tweeting that "trade wars are good, and easy to win."
When a country (USA) is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good, and easy to win. Example, when we are down $100 billion with a certain country and they get cute, don’t trade anymore-we win big. It’s easy!
— Donald J. Trump (@realDonaldTrump) March 2, 2018
Already reacting to the tariffs, a retaliation for retaliatory tariffs, Chinese officials are looking into other ways to respond, such as delaying approvals of mergers and acquisitions by U.S. companies, delaying licenses for U.S. companies and "delaying and ramping up" inspections of U.S. exports at its borders, according to CNBC.
China's Foreign Ministry called the U.S. tariff increases "typical bullying" and "completely unacceptable."
The tariffs listed will undergo a two-month review process closing at the end of August.
To view the full list of items, click here. In the meantime, here's a quick list of included items that directly or indirectly relate to the promotional products industry:
- Trays, dishes, plates and cups of paper and paperboard
- Raw silk
- Silk yarns
- Woven silk fabrics
- Wool yarn
- Cotton yarn
- Woven fabrics of wool
- Various cotton products
- Woven fabrics of other textile fibers
- Synthetic yarn
- Carpets and other textile floor coverings
- Terry toweling
- Woven terry fabrics
- Mechanically made lace
- Rubberized textile fabrics
- Knitted and crocheted fabrics
- Hat forms
- Hat shapes
- Hair nets of any material
- Hats and headgear of cotton and/or flax and wool
- Safety headgear
- Various fruits
- Animal hides
- Knives and other silverware
- Parts of lamps, lighting fixtures, illuminated signs and the like, chimneys (plastic, glass and otherwise)
- Trunks, suitcases, vanity and attache cases
- Dog leashes, collars, muzzles, harnesses and similar dog equipment of any material
- Cartons, boxes and cases of corrugated paper and paperboard
- Paper and paperboard labels, printed in whole or part by a lithographic process
- Sacks and bags having a base width of 40 cm or more of paper
- Tablecloths and table napkins of paper pulp, paper, cellulose wadding or webs of cellulose fiber
- Handkerchiefs, cleansing or facial tissues oand towels of paper pulp, paper, cellulose wadding or webs of cellulose fiber
- Travel, sports and similar bags with outer surface of textile materials
- Travel, sports and similar bags with outer surface of plastic sheeting
- Bags, cases and similar containers with outer surface of cotton
- Cases for CDs, CD players, cassettes or cassette players
This is not a complete list. As always, we'll keep you updated on any developments.