The United States re-exempts 352 tariffs on Chinese imports, including a large number of electronic components such as motors, sensors, and aluminum electrolytic capacitors
Chinese import tariffs
On the 23rd local time, the Office of the US Trade Representative issued a statement announcing the re-exemption of tariffs on 352 items imported from China. The new regulations will apply to imports from China between October 12, 2021 and December 31, 2022. s product.

In October last year, the USTR announced that it planned to re-exempt tariffs on 549 Chinese imports and was seeking public comment. After nearly half a year, the Office of the US Trade Representative issued a statement on the 23rd, confirming the confirmation of 352 of the 549 items of Chinese imports that had previously been re-exempted from tariffs.

U.S. imposes tariffs on Chinese imports

In the past few years, the U.S. government has successively imposed tariffs on Chinese imports. In July and August 2018, 25% tariffs were imposed on Chinese goods worth about US$34 billion and US$16 billion, respectively, of which 279 items worth US$16 billion included US$6.3 billion in semiconductor products.

Next, on September 24, 2018, the U.S. government continued to increase its weight, announcing an additional 10% tariff on about $200 billion of Chinese imports. The corresponding products include Internet technology products, electronic products, printed circuit boards and consumer goods, etc. . In 2019, the U.S. Customs and Border Administration issued a statement that on May 10 of that year, the tariffs on this $200 billion worth of Chinese goods were raised from 10% to 25%.

Then, on August 29, 2019, it announced that it planned to increase the tax rate of the above-mentioned goods worth a total of 250 billion US dollars (including a list of US$34 billion of goods, a list of US$16 billion of goods and a list of US$200 billion of goods) from 25% to 30%. Effective October 1, 2019.

But it didn’t end there. The U.S. government officially started to impose tariffs on US$300 billion of Chinese imports from September 1, 2019. The tax rate is 15%. The US$300 billion worth of Chinese imports are divided into two parts, List 4A Effective September 1, List 4B is effective December 15.

The products that took effect from September 1, 2019 are mostly live animals, meat products, dairy products, certain clothing, certain toys, jewelry and other products, as well as some electronic equipment, household appliances, etc., from December 15, 2019 Most of the products in effect are electronic products, including mobile phones, notebook computers, game consoles, computer monitors, etc.

Why has the United States imposed tariffs on Chinese imports many times? It can be seen that the goods subject to the tariffs imposed by the United States involve many high-end electronic technology products, such as semiconductors, printed circuit boards, smartphones, notebook computers, computer monitors, etc. The additional tariffs can protect the profits of local high-end companies in the United States. Second, it can curb the revenue and growth of Chinese-related companies, and curb the development of Chinese technology companies, so that the United States can always occupy a dominant position in many technologies.

However, the long-term imposition of tariffs to restrict the import of products has also put a lot of pressure on some industries in the United States. Therefore, in 2019 and 2020, the United States has repeatedly imposed tariffs on some of the above-mentioned tariff-imposed commodities for a certain period of time. Exemption, On March 25, 2019, the Office of the United States Trade Representative announced that it will temporarily exempt some of the above $34 billion worth of Chinese exports from additional tariffs for a period of one year.

On July 27, 2020, the Office of the U.S. Trade Representative announced a list of extended deadlines for excluding additional tariffs, mainly for some China in the exclusion list announced on July 31, 2019 and valid until July 31, 2020. Goods, the exemption period is extended until December 31, 2020.

The exempted goods include a large number of electronic products

According to statistics, the U.S. government has approved more than 2,200 tariff exemptions for China in the past, and among them, most of the exemptions have expired, including 549 tariff exemptions that have been extended for one year and expire at the end of 2020. The exempted goods are 352 of them.

Judging from the list, the Chinese imports exempted from tariffs this time include a large number of electronic-related products, such as motors, sensors, switches, controllers, capacitors, resistors, printed circuit boards, displays, etc. The part is as follows

What is the purpose of the U.S. tariff exemption this time? It may be to ease its current inflationary pressure. Now that the U.S. prints a large number of dollars, and domestic inflation is severe, the U.S. exempts tariffs on Chinese imports, allowing more Chinese products and assets. Exported to the United States, the United States can use dollars to buy a large number of goods and assets from China and other countries, thereby introducing inflation to the world to alleviate its own inflation.

So what does the tariff exemption mean for China? It is a good thing for Chinese electronic product-related enterprises that operate the above-mentioned products and export a large number of them to the United States. They can increase exports, expand profits, make more money, and then invest in technology research and development to enhance their strength. This is for enterprises and industries. is beneficial.

In addition, according to industry analysts, this can also increase the country's foreign exchange, and you can use these foreign exchange to buy goods in other countries, but you also need to be vigilant. The more dollars you use, the more the dollar's hegemony in the world will be deepened. The economic position is unfavorable, so de-dollarization is now being implemented, but this is a long-term process.