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member memos

Trade war with China -- effect on DS industry

4/3/2018

 
​Dear Colleagues --

The U.S. administration has just published a proposed list of 1,300 Chinese imports that will be hit with tariffs. See news brief here....
We have reviewed the proposed list. The following are relevant to our industry, listed by HTS subheading and product description:
  • 29146200  Coenzyme Q10
  • 30012000  Extract of glands or other organs or of their secretions for organotherapeutic uses
  • 30029101  Ferments, excluding yeasts [not sure yet what this one means]
  • 30045010 thru 30049010 -- inclusive of vitamins B2, B12, E, hyaluronic acid, or its sodium salt [not certain whether medicaments in this case infers dietary supplements -- to be investigated]

The above represent the raw materials in question.

Among the 1,300 items are a wide array of mechanical, technical, analytical equipment, and related parts that may affect the import of related equipment.

We will keep you informed as we learn more about what the new tariffs will be. As you know, this will be a continuing story. China has clearly stated it will reciprocate. At the moment, this has the signs of a blooming trade war.

Regards,

LDI


---------- Forwarded message ----------
From: Patricia Knight <PKnight@knight-cap.us>
Date: Tue, Apr 3, 2018 at 5:24 PM
Subject: China situation.
To: Loren Israelsen <loren@unpa.com>, Peter Reinecke <peter@rssinc.us>


TRUMP THREATENS CHINA WITH $50B IN NEW TARIFFS: In an escalation of President Donald Trump's trade war with China, the administration has published a proposed list of 1,300 Chinese imports it will hit with tariffs in retaliation for the country's intellectual property practices. The list was unveiled after markets closed , in an apparent move to avoid yet another big stock-market drop, as has happened after other recent Trump trade actions. The tariffs will be imposed on $50 billion worth of imports to "punish Beijing for pursuing policies accused of bolstering its own technological and economic development at the expense of U.S. companies," reports Pro Trade's Adam Behsudi. "The value of the product list would equal the annual damage the Trump administration says U.S. companies suffer as a result of" China's policies that force U.S. companies to transfer valuable technology as a condition of doing business there. 
China will likely continue firing back with more retaliatory action. Longtime China watchers say Beijing's retaliation for steel and aluminum tariffs this week was a warning shot to send a message in the technology case. "China's ambassador to the U.S., Cui Tiankai, said [earlier today] that China 'will certainly take countermeasures of the same proportion and the same scale, same intensity.' The envoy played down allegations that the Chinese government was involved with siphoning off U.S. innovation, adding that it was strengthening efforts to protect intellectual property."
Can't stop, won't stop: More retaliatory tariffs from China on U.S. imports could be in the offing over a separate trade case, over U.S. duties on solar panels and washing machines, after WTO consultations failed to resolve the issue. "China said that because the 30-day consultation period for those U.S. duties has ended, it now has the right to apply 'countermeasures' to U.S. imports under the WTO Safeguards Agreement to compensate for any hit the Trump administration's actions could have on exports of Chinese-made solar products and washing machines," Adam also reports. 
"Beijing on Feb. 12 had requested consultations with the United States over the administration's safeguard tariffs on solar products and washing machines, which President Donald Trump signed off on in January as part of an investigation under Section 201 of the Trade Act of 1974," Adam adds. "The U.S. took the position that it was not obligated to compensate China because its actions were in line with the Safeguards Agreement. Beijing asserted, however, that it had a right to seek compensation regardless of the legality of the U.S. measure. China also argued that it did not have to wait three years to apply its countermeasures, as stipulated in the Safeguards Agreement, because the U.S. actions were not as a result of an absolute increase in imports and did not conform with the agreement."

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