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The United States imposes 25% tariff

on $50 billion of goods from China


June 2018.

- - A brief overview - -
By Salvador Acosta Romero
“My great friendship with
President XI of China and our
country’s relationship with
China are both very important
to me."

"Trade between our nations,


however, has been very unfair,
for a very long time.”

From the statement by president Donald Trump


"China has… long been
engaging in several unfair
practices related to the
acquisition of American
intellectual property and
technology" *

"These practices… harm our


economic and national security
and deepen our already massive
trade imbalance with China."

* Sustained by a report published by the United States Trade Representative (USTR)


* (https://ustr.gov/sites/default/files/Section%20301%20FINAL.PDF)
Motives behind the decision

"In light of China’s theft of


intellectual property and
technology and its other
unfair trade practices, the
United States will
implement a 25 percent
tariff on $50 billion of
goods from China that
contain industrially
significant technologies."
"Made in china 2025"
real concern of the United States

'Made in China 2025' es un proyecto para transformar al país de una economía con gran densidad de mano de obra que fabrica
juguetes y ropa, a otra con productos avanzados de ingeniería, como robots y automóviles eléctricos. La administración de Trump ve la
cuestión como un intento de robar la tecnología de EE.UU. y controlar industrias de vanguardia. (http://www.latimes.com/espanol/
internacional/la-es-como-el-plan-made-in-china-2025-se-convirtio-en-la-verdadera-amenaza-de-una-guerra-comercial-20180424-story.html)
The US$50 billion value of tariffs is equivalent to
10.8% of 2016 US imports from China

The products subject to tariffs are grouped in two sets.

The first one consisting of 818 products. "Customs and


Border Protection will begin to collect the additional
duties on July 6, 2018."

The second set of 284 products is closely related to


the "Made in China 2025" Plan, and "will undergo
further review in a public notice and comment process,
including a public hearing."
List of products with the word 'pump', in the
first set of 818 products

8413.19.00 Pumps for liquids fitted or designed to be fitted with a measuring device, nesoi (Not Elsewhere Specified Or Indicated)

8413.50.00 Reciprocating positive displacement pumps for liquids, not fitted with a measuring device, nesoi


8413.60.00 Rotary positive displacement pumps for liquids, not fitted with a measuring device, nesoi


8413.70.20 Centrifugal pumps for liquids, not fitted with a measuring device, nesoi


8413.81.00 Pumps for liquids, not fitted with a measuring device, nesoi


8413.91.10 Parts of fuel-injection pumps for compression-ignition engines

8413.91.20 Parts of stock pumps imported for use with machines for making cellulosic pulp, paper or paperboard

8413.91.90 Parts of pumps, nesoi

8414.90.90 Parts of air or vacuum pumps and ventilating or recycling hoods


List of products with the words 'compressor' and
'dryers', from the first set of 818 products.

COMPRESSORS:
8414.30.40 Compressors of a kind used in refrigerating equipment (including air conditioning) not exceeding 1/4 horsepower

8414.30.80 Compressors of a kind used in refrigerating equipment (incl. air conditioning) exceeding 1/4 horsepower

8414.80.05 Turbocharger and supercharger air compressors

8414.80.20 Turbocharger and supercharger air compressors


8414.90.30 Stators and rotors of goods of subheading 8414.30


8414.90.41 Parts of air or gas compressors, nesoi (Not Elsewhere Specified Or Identified)


DRYERS:
8419.31.00 Dryers for agricultural products, not used for domestic purposes


8419-32-10 Dryers for wood


8419.32.50 Dryers for paper pulp, paper or paperboard


8419.39.01 Dryers, other than of a kind for domestic purposes, nesoi



China’s response:
a commentary from CGTN
(China Global Television network)

"Hours after the US administration fired the first shot on Friday, China
announced additional tariffs on US goods that are of the same scale and
intensity and due to take effect on the same date."

"China said it will impose an additional 25 percent tariff starting July 6 on


545 products from the US including soybeans, electric cars, orange
juice, whiskey, salmon and cigars."

(https://news.cgtn.com/news/3d3d674e33416a4d78457a6333566d54/share_p.html)

(https://news.cgtn.com/news/3d3d674e33416a4d78457a6333566d54/share_p.html)
Additional information and sources
In 2016, the total trade between China and the USA
reached 578.6 billion dollars.

80% of it is United States imports,


20% is exporting to China

This imbalance has been going on for many years,


(see next two graphics)
China - United States Total Trade Value, 2007-2016
China-United States Trade, 1996 - 2016
Blue: United States exports to China. Red: United States imports from China
References

https://www.whitehouse.gov/briefings-statements/statement-president-
regarding-trade-china/

http://www.europarl.europa.eu/news/en/press-room/20120523IPR45628/
meps-take-aim-at-china-s-unfair-trade-practices

https://ustr.gov/sites/default/files/Section%20301%20FINAL.PDF