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150 industry associations in the United States call for not to increase taxes on Chinese goods

Sep. 18, 2018

On September 6, 150 US industry associations jointly sent a letter to the US trade representative, calling for not to impose more tariffs on Chinese goods exports to the United States, and warned that the addition of tariffs would seriously damage the global supply chain and harm US companies and consumers.


These industry associations emphasize that it is American companies and people who pay customs duties for importing Chinese goods, not Chinese companies. The US government's tariff on Chinese goods will increase US corporate and consumer spending and weaken the competitiveness of US manufacturers and service providers. They urged the US government not to take further tariff action against China and open comprehensive negotiations with China to resolve trade and investment issues and avoid further escalation of economic and trade frictions.


Just the day before, Apple issued an open letter to the US Trade Representative Office, expressing its strong hope that the US government would not impose tariffs on a range of Apple accessories, including Apple Watch, AirPods, power adapters and data cables, because this would This has led to a slowdown in the US economy and a decline in competitiveness, and the prices of goods purchased by American consumers will be higher."


Not only that, the US intends to impose tariffs on foreign cars and auto parts has also attracted strong opposition from the EU, Canada and other regions and countries. On July 19 this year, the European Union, Mexico and Canada all said that if the United States imposed new tariffs on cars and auto parts, it would retaliate against the United States.


On September 11, the British "Economist" published an article saying that Trump believes that people in other countries will pay for the tariffs they plan to impose on Chinese products of 200 billion US dollars, but others do not agree, they think the tariffs will Pushing up the US domestic budget, it may be that Americans pay for tariffs. Trump believes that if Chinese commodity prices rise, Americans can evade tariffs by choosing alternative suppliers, but it is difficult to have such alternatives that are comparable in price and quality. In fact, a supplier that transforms to provide alternatives will certainly increase the buyer's spending, and this adjustment will be more difficult to achieve as tariff targets cover all goods imported from China. About half of the goods that are taxed are intermediate products used to produce other goods. Due to the customization of the intermediate products, it may be difficult for the importer to find ready-made alternatives.


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