The U.S. decides to extend tariffs on China, and China: It is bound to cause many U.S. companies and consumers to suffer greater losses
Latest News: Bloomberg reported on the 8th, citing people familiar with the matter, that U.S. President Biden delayed a decision on the Trump-era tariffs on Chinese imports. China’s Ministry of Commerce spokesperson Shu Jueting responded that day, saying that the US 301 tariff measures against China are not good for China and the United States, and are not good for the whole world. Shu Jueting pointed out that in the current situation of high inflation, the U.S. decision to extend tariffs on China will inevitably cause many U.S. companies and consumers to suffer greater losses.
Bloomberg also revealed in the report that earlier this year, Biden signed a new exclusion process to exempt manufacturing materials imported from China from tariffs, but has also decided to delay it.
In 2018, former US President Trump imposed four rounds of tariffs on nearly $370 billion worth of Chinese goods based on the results of the Section 301 investigation. The first round was conducted in two batches, which began on July 6 and August 23, 2018, respectively, with additional tariffs on Chinese goods worth $34 billion and $16 billion.
According to the U.S. “Trade Act of 1974”, the tariff measures under Section 301 will expire after 4 years, and the Office of the United States Trade Representative (USTR) will review the opinions of the domestic industry to decide whether to extend or cancel it. USTR released a message on May 3 this year, saying that it would initiate a review process for the above-mentioned additional tariffs to solicit industry opinions.
Bloomberg said on the 8th that the Biden administration has been hesitant for months on whether to cancel some tariffs imposed on Chinese goods. Cabinet members such as U.S. Commerce Secretary Raimondo and Treasury Secretary Yellen believe that limited tariff cuts will make U.S. businesses and consumers buying Chinese goods benefit. But U.S. Trade Representative Dai Qi has always maintained a tough stance on imposing tariffs on Chinese goods, seeing them as a “chip” against China. Since then, U.S. officials and public opinion have repeatedly vented about handling issues related to tariffs on China.
According to Bloomberg News, USTR issued a statement on the 2nd of this month, announcing the results of the consultation launched in May. The statement said that it has received a request from “domestic industry representatives who have benefited from tariffs on China” to continue to maintain tariffs, so the tariffs have not expired after four years, and USTR will continue with the next review process. According to the “South China Morning Post” report, Dai Qi once again claimed on the 7th that the United States will not cut tariffs on China. She believes that the “2022 Chip and Technology Act” signed by Biden and the current tariffs on China are both “effective tools” for the United States to maintain its competitiveness with China, which can also ensure that economic development will not deviate from “act (the United States)” ) principles of economic cornerstones”.
Maintaining tariffs on China helped push U.S. inflation to its highest level in 40 years, data showed. The U.S. CPI in July this year was 8.5%, a sharp drop from the previous value of 9.1%, but still at a 40-year high and still quite far from the Fed’s 2% target.
Li Yong, deputy director of the Expert Committee of the China Society for International Trade, told the Global Times reporter that Trump’s trade war with China using tariffs as a means has failed, and many industries in the United States have suffered “backlash” and are facing severe inflation. The problem is that the strong industrial chain formed between China and the United States for more than 40 years has not changed under the political will of the United States. He believes that maintaining the additional tariffs imposed on China by the Biden administration will only allow American households and businesses to continue to bear the additional expenditures incurred due to tariffs, and is not conducive to the recovery of the U.S. economy as a whole.