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On August 1, US Trade Representative Wright Heze announced that US President Trump has instructed him to take action to increase the tax rate on Chinese goods worth 200 billion U.S. dollars from 10%, which was originally claimed to be imposed, to 25%. To this end, the United States postponed the submission deadline for public written comments from August 30 to September 5; the time to apply for the hearing was postponed to August 13.
According to the preliminary arrangement of the China Textile International Trade Office on July 10th, the Trump administration announced the list of tariffs to be imposed. The textile products are calculated according to the US standard and have more than 900 tax numbers, covering a wide range of materials, including various raw materials (cotton, All yarns, fabrics/fabrics, as well as industrial textiles and a part of textile machinery products of wool, silk, hemp and chemical fiber, involve an annual export value of about US$4 billion.
The $4 billion textile goods, subject to a 10% tax rate, is a new tariff of $400 million; and the tax rate of 25% is the new tariff of $1 billion.
The real feeling of textile enterprises
Since the beginning of the Sino-US trade war, news from Trang's popularization of the US government has changed day by day. Textile people feel too uncertain and can't keep up with the changing rhythm.
The relevant person in charge of Shanghai Huashen Import & Export Co., Ltd. said that there are too many uncertain factors, which makes the judgment at the time of receiving orders too subjective. I hope that the government will give clear guidance to the textile and garment industry, avoid the damage caused by trade friction as much as possible, and at the same time improve the investment environment in China, encourage the textile and garment industry to upgrade its technology, and strengthen the countries along the ASEAN, EU, and the Belt and Road, and Central and South America. The country’s free trade agreement was signed so that China’s textile and apparel products have more sales targets.
Zhang Wei, general manager of Beijing Textile Technology Co., told the reporter of China Textile News: “The increase in tariffs from 10% to 25% offset the recent export benefits brought about by the depreciation of the RMB. Although the list has not yet been involved in garments. The product, but the overall trade situation is tense. A small part of our company's home textile products are listed in the list project, but the other developing countries of the product are not very competitive. Therefore, the final customer purchase price will be affected and the purchase volume will be reduced. The future policy of Rump may involve more clothing products, and we hope that the government will introduce relevant policies to maintain the competitiveness of our products. In the long run, enterprises should improve their own competitiveness, try to provide medium and high-end products with less substitution, and expand exports. The region guarantees trade balance."
There are also some home textile fabric companies that have been preparing for the autumn and winter new products and proofing in the past, but this year they are afraid to take orders. “Because the future trade situation is uncertain, it is possible to do much more.”
The relevant person in charge of a large export enterprise in Jiangsu said that “the textile products are not sophisticated and highly replaceable, coupled with the low profit margin of the industry and the ability to withstand pressure.”
The relevant person in charge of Ningbo High Import and Export Co., Ltd. believes that the current Sino-US trade uncertainty has increased sharply and the number of variables has increased. Enterprises can only act with caution. “The depreciation of the renminbi has some positive effects on the export of Chinese textile and garment enterprises. In addition, the company is constantly improving its independent research and development capabilities, and new functional fabrics are highly recognized by European and American customers. Working hard on innovation, making efforts in intelligence, enterprise talent Respond to a complex trading environment."
Textiles Import and Export Chamber of Commerce gives advice
To this end, the China Chamber of Commerce for Import and Export of Textiles said that the public comment process can have a very positive effect. The US$50 billion tax collection list covering the 1333 eight-digit tariff code issued in April of the United States excluded 515 tax numbers after the public comment procedure. . Therefore, the Chamber of Commerce recommended that the affected Chinese enterprises act immediately, unite with US importers and downstream users, and actively use the public appraisal process for the $200 billion list conducted between July and September to strive for the final product of the company's products. Excluded from the tax list.
The specific recommendations are as follows:
First, the company accurately determines whether the product is in the list of newly added tariffs. Since the US published the list using the US tax code, which is inconsistent with the Chinese tax code, the company should first screen the product under the six tax numbers with the first six US tax numbers to confirm whether the product falls. Into the list. (If you have any questions about tax-related products, you can contact the China Chamber of Commerce for Import and Export of Textiles.)
Secondly, immediately contact the US importer, ask the US importer to submit a comment on the taxation, and submit an application for a public comment hearing before August 13. Submit a written comment before August 17. On September 5th, all written comments were submitted.
In addition, while applying for product exclusion or submitting comments, the company recommends that the future tariff cost sharing be negotiated with the buyer as soon as possible, and the relevant clauses should be included in the contract or the written agreement to clarify the responsibilities of both parties to avoid risks.
In response to the US plan to increase the tax rate on China's 200 billion US dollars exported to the United States, a spokesperson for the Ministry of Commerce made a statement on the 2nd. The spokesman said that China is fully prepared for the threat of the US to upgrade the trade war, and will have to counter-measure to defend the country's dignity and the interests of the people, defend free trade and the multilateral system, and defend the common interests of all countries in the world. At the same time, China has consistently advocated resolving differences through dialogue, but only if it is necessary to treat each other equally and keep its promises.
Is it really "dry" or fake smoke bombs?
Many companies said in the interview that they cannot see whether the United States really intends to increase the tariff increase to 25%, or for other purposes. A spokesman for the Ministry of Commerce said on the 2nd that the US side had two actions in the past two days. On the one hand, it issued a statement to increase the tax rate for China’s 200 billion US dollars to US products from 10% to 25%. The wind is going to resume negotiations with China.
Some garment exporters said they noticed that in late July, Trump's daughter Ivanka Trump announced that it would close the fashion brand of the same name.
The brand was founded in 2007, and its product line includes clothing, handbags, shoes, etc. According to WWD, the value of the Ivanka Trump brand before Trump took office was about $100 million. During Trump's campaign, Ivanka Trump was basically wearing his own branded clothing in public, greatly enhancing the brand's attention.
Although in January 2017, the “first daughter” announced her departure from her personal brand and prepared for the White House’s informal advisor in March, she actually held a stake in the brand.
Trump has been working on “home-made manufacturing” since he took office, and threatened to punish US companies that set up factories overseas by imposing high tariffs. However, according to the New York Times survey, almost all of Ivanka Trump's products are produced overseas. According to the information provided by the trade database ImportGenius, as of December 5 last year, there were 193 batches of Ivanka Trump products, most of which were made in China. The brand's dresses and shirts are from China, Indonesia and Vietnam.
To this end, many people think that Ivanka Trump closed the same name brand to reveal two signals: First, further confirm that the Chinese-made clothing and apparel market is very high in the US market, and second, for the Sino-US trade war and "Made in the United States." "The Trump administration is serious, and Chinese companies must be prepared for it."