US-China trade friction: US import trends in China-Impact analysis of China’s additional tariffs

US-China trade friction: US import trends in China-Impact analysis of China’s additional tariffs

June 05, 2019

Chinese side: Additional tariff measures (Attachment: see Table 1)

Trade friction between the United States and China is intensifying again.

China implemented a 25% tariff increase on 659 items on July 6, 2018.

The second installment: August 23, 2018

Third installment: September 24, 2018, June 1 2019 additional increase

strengthening our defenses against the United States.

JETRO: Impact Analysis of China’s Additional Tariffs (Attachment: See Table 2)

summarized how the first to third China’s additional tariff measures affected US imports in 2018.

Chinese side: Imports decreased sharply

The large decline in imports compared with the previous year includes many items affected by additional tariff measures.

Top 20 reduced items;

Soybean (HS code 12019010): 49.3% decrease,
Passenger cars (HS code 87032342): down 24.9%,
Waste paper (HS code 47071000): 23.2% decrease,
Passenger car (HS code 87038000): 21.7% decrease
There were 4 items in (1st: 3 items, 2nd: 1 item).

 increased items:

Items of industrial policy importance for China are exempt from additional tariffs

On the contrary, some of these items have increased significantly.

In particular,

Airplanes and other aircraft: (HS code 88024010): increased by 9.6%,
Hybrid integrated circuit (HS code 85423190): increased by 20.4%.

GTA: Import value from the United States in 2018

According to GTA, imports from the US in full-year 2018 increased 3.5% over the previous year.

First half (Jan-Jan 2018): 14.4% increase over the previous year
Second half (July-December 2018): down 8.4% from the previous year
From July to September 2018, the simultaneous enforcement of the first to third additional tariff measures had a major impact.

2019: Trends in the first quarter (Jan-March 2019)

Imports from the United States have dropped significantly by 29.3% from the previous year.

Additional tariff rates (5-25%) will be applied to the third ($ 60 billion) from June 1st.

Imports from the United States in 2019 need to be closely watched.

-JETRO

https://www.jetro.go.jp/biznews/2019/06/2f71e9747269e34b.html