A six-day public debate on the US government's proposal to introduce customs duties of up to 25 percent on Chinese goods imports for $ 200 billion starts today in Washington, according to Reuters.
However, companies and business associations from a number of sectors warn that the planned import duties, which are part of the efforts of President Donald Trump and the US Permanent Sales Representative to pressure Beijing to change its trade and economic policies, will force the Americans more to pay for items that they use in daily life, from the cradle to the grave.
Unlike previous customs duties in the US, where the government has made efforts to protect consumers by focusing on Chinese industrial machines, electronic components and other intermediates, it is expected that thousands of consumer goods will be directly affected by customs duties by the end of September. The trading stock of $ 200 billion includes seafood, furniture and lighting, car tires, chemicals, plastics, bicycles and car seats for babies & # 39; s.
"The tasks the permanent sales representative is proposing for additional $ 200 billion in Chinese imports will significantly increase the damage to US consumers, employees, businesses and the economy," the US Chamber of Commerce warned in a written statement about the public debate.
The House, the leading lobby group of US companies, said the Trump administration had no "comprehensive strategy" against China's theft of intellectual property and other harmful business practices. The organization calls for serious discussions with Beijing.
Representatives of the US middle-class administration are expected to meet their Chinese counterparts in Washington later this week to discuss the trade dispute between the two countries. It is not known, however, whether negotiations will have any influence on the imposition of US duties and the reaction of China.
According to the Wall Street Journal, talks will take place on August 22 and 23, just as a new US $ 16 billion tax line in US dollars is appropriate. The new American rates will take effect on 23 August.
In more than 1,400 written submissions to the office of the permanent sales representative that will be reflected in the debates, most companies say that rights will cause damage and higher prices for products ranging from Halloween costumes and Christmas lights to production components. of nuclear fuel.
Relatively small is the number of companies that approve the new tasks or want to expand to other raw materials.
According to Graco Children's Products Inc., a division of Newell Brands Inc., the tasks will "have a direct negative impact on our company, US parents and, most importantly, the safety of American children."
The company says that higher prices can force parents to buy baby car seats, swings and hand-held baby cots.
Proposed tasks can force parents to put their children to sleep or with unsafe facilities, which is dangerous, according to the company. Customs duties will only lead to the safety problem of a child, but they will not convince China to change its policy, Greco says.
At the other end of the life circle, the president of Centennial Casket Corp. Douglas Chen says his company is heavily reliant on Chinese coffins. Customs duties will cause a big loss and increase the prices for the relatives at one of the worst moments of their lives, he says.
The association of online companies, such as Facebook, Amazon and Alphabet, notes that the tasks "cause disproportionate economic damage to US Internet companies." The list contains products that influence the work of internet companies.
Westinghouse Electric, the leading American producer of nuclear fuel, reports that it is dependent on Chinese zirconium oxide and zirconia powders that are not produced in the United States. Ultimately, taxes will increase the cost of electricity for a significant proportion of US consumers, according to the company.
Huffy Corp., the largest American bicycle brand, with annual sales of 4 million bicycles produced in China, says that a 25 percent tax is a serious threat to the company.
Customs duties had to be imposed 20 years ago when Huffie and other US manufacturers demand 11 percent import duties due to highly aggressive Chinese imports, says Bill Smith's CEO. When their efforts failed, Huffi closed three factories in the United States in 1998 and 1999, leaving 2000 employees unemployed and moving to Chinese bicycles.
"These proposed tasks are too low and come too late, raising rates will now only cause problems and job costs for independent bike dealers," Smith said.
/ BTA /