Trump Administration to Impose New Tariff on Imported Goods from China

Luthfil Hadi - Jakarta, 24/09/2018, 14:34


The Donald Trump administration will start to impose import tariff for some Chinese origin imported goods. The list of goods reach up to 200 Billion U.S Dollar in value. The new regulation about imposing the import tariff will be enacted starting from September 24th 2018.

Donald Trump warns the Chinese government to avoid any activities that could be seen as attacking the American farmer and industries. He said, “We will immediately pursue phase three, which is tariffs on approximately USD 267 billion of additional imports.” Trump administration newest decision is to impose a 10 percent of import tariff for the listed item starting September 24th 2018 to December 31st 2018. And then, starting January 1st 2019, the imposed tariff will be increased to 25 percent. This statement was released by President Trump.

This measures is the follow up for section 301 process, which has been done for more than 12 months by the United States Trade Representative (USTR). After a thorough study, USTR came to a conclusion that China has been involved in many unfair act and policy against United States technologies and intellectual properties. One of the unfair act is China forced the United States company to transfer their technology to their Chinese counterparts.

President Trump said that United States has been trying to convince the Chinese to change their way of doing things and to start to treat the U.S companies fairly and reciprocally for a quite some times already. But the Chinese still don’t want to change how they do things. This has encourage the Trump administration to release a new regulation on imposing import tariff on imported goods originating from China.

The Chinese government didn’t take this quietly. They answer the Trump administration list of 200 billion U.S dollar by also releasing 4 list of goods imported from United States with a total value of 60 billion U.S dollar as a counter measures. The listed goods will have import tariff imposed in the area of 5 percent to 25 percent.

Peter Sand, the Chief Shipping Analyst at BIMCO explain that this is the first time in the history of modern trade wars where China seems to unable to respond equally to the measures taken by the U.S government. The 60 billion U.S dollar list released by the Chinese government is deemed unable to match the 200 billion U.S dollar list released by the Trump administration. Moreover, when factoring the Chinese export to United States which is way much larger in number than their import from the same country, the Chinese government need to find another method aside to imposing import tariff to retaliates against the U.S if they want to prolong the trade wars.

According to BIMCO, about 85 percent of Chinese seaborne imported goods came from U.S and the U.S seaborne imported goods that came from China is only around 58 percent. These number could be affected if the trade wars between the two countries don’t stop soon. At the moment, the seaborne trade goods from China to U.S imposed with the new import tariff amount to 6.6 million tons of goods, or equivalent to 660,000 TEUs of goods. BIMCO said that the trade wars between China and U.S will affect around 1.5 percent of the total global seaborne container trade.


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