China to cut import tariffs on wide range of products.

mountains clouds historical great wall of china

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According to Reuters, China’s finance ministry will reduce import tariffs on textiles and metals from 11.5% to 8.4% on November 1st. Tariffs on wood and paper products, minerals and gemstones will be cut from 6.6% to 5.4%.

The reduction in tariffs on imports is part of Beijing’s efforts to increase imports this year and likely due to the current trade situation between China and the United States.

November 1st marks the second time in which China reduced import tariffs – the first reduction occured in early July and covered import tariffs on mostly consumer items – such as clothing, home appliances, fitness products among others.

US and Canada working towards NAFTA agreement.

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According to Bloomberg, the US and Canada are working on keeping Nafta an agreement between the US/Mexico and Canada.

Bloomberg quotes Mexican Economy Minister Ildefonso Guajardo as saying the US and Mexico are postponing publishing the text of their two-way trade deal in the event the US and Canada reach an agreement.

 

US and China exchange tariff duties in trade war.

harbor terminal container container ship

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Sorry for the lack of updates, Trump’s 232 and 301 duties have been occupying most of my time.

As you likely already know, yesterday, the Trump administration announced they will impose 10% duties on $200 billion worth of Chinese goods, earlier today, China announced retaliatory duties on $60 billion in US goods.

If you import from China and have questions about commenting, exclusion requests or other alternatives to minimize the tariff penalty – feel free to give me a call, 832.896.6288 or email me at dhsu@givensjohnston.com.

EU will vote to adopt”counter-balancing measures”on June 20th.

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At the next scheduled European Commission meeting scheduled for today (June 20th), the commission will vote on whether to adopt “counter-balancing measures” against the US.

Last Thursday (June 14th), the European Union countries unanimously endorsed a plan to impose counter trade tariffs against the US covering $3.3 billion worth of US products.

Once the vote is approved, the duties on US goods to the EU should be in place late June or early July.

 

U.S. Commerce Secretary in China for trade talks.

china shanghai

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According to an Associated Press article from June 1st, U.S. Commerce Secretary Wilbur Ross arrived in Beijing on Saturday for talks on China’s promise to buy more American goods.

The talks are about China’s May 19th announcement to narrow the trade surplus with the US, which reached a record high of $375 billion USD last year. China previously indicated they would increase purchase of farm goods, energy and other goods and services.

Additionally, the US may not get the commitment it seeks in reducing the trade deficit as China’s “Made in China 2025” plan seeks to establish China as an industry leader in high tech industries such as robotics, computer chips and electric vehicles.

A resolution may not occur with just one meeting as Trump has threatened tariffs on $100 billion of Chinese goods and China threatening retaliatory tariffs on $50 billion of US goods.

Check back for the latest news of the results of the Secretary Ross meeting.

If you have any questions about current antidumping or countervailing duty actions on goods from China – feel free to call experienced trade attorney, David Hsu at 832-896-6288 or by email at dhsu@givensjohnston.com.

No US-Rwanda Trade War Updates

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Flag of Rwanda via Wikipedia

A few days ago I posed about a pending US-Rwanda trade war over Rwanda’s import duty on second hand clothes imported into Rwanda.

My post mentioned a May 28th deadline in which the US asked Rwanda to reverse or reduce tariffs on imports of secondhand clothing – as of today, there has been no news. Yesterday (Monday, May 28th) was Memorial Day in the US, so a decision will likely be made some time this week.

ZTE estimated to lose $3.1 billion due to US sanctions (Bloomberg).

night skyline skyscrapers shanghai

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Bloomberg news reported that China’s ZTE Corp is estimated to lose at least 20 billion yuan ($3.1 billion) due to Washington’s ban on U.S. firms hardware and software. The Bloomberg article cited unnamed sources.

Bloomberg also reports that ZTE is hopeful that the United States and China will be able to reach a deal that would remove the ban and has a plan in place allowing the telecoms firm to “swing idled factories into action within hours” of the ban being officially lifted.

Deal reached to allow ZTE to purchase U.S. hardware and software?

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ZTE Campus in Shenzhen, Guangdong Province, People’s Republic of China; By Brücke-Osteuropa – Own work, Public Domain

According to a Wall Street Journal article dated May 22nd, the US and China have reached a tentative deal on what steps ZTE could take in order for the Trump administration to remove the ban preventing U.S. companies from selling hardware and software to ZTE.

As previously mentioned on this blog, U.S. companies were barred for selling components and software to ZTE for a period of 7 years due to ZTE not complying with the terms of a 2017 plea deal for violations related to shipping US equipment to Iran and North Korea.

Citing sources close to the negotiation, the WSJ reported ZTE would need to make management changes, changes in the board and payment of additional fines.

Check back for more updates to the ongoing ZTE issue as they become available.

For any questions about denial orders, ZTE, customs or trade law, contact David Hsu at 832-896-6288 or by email at dhsu@givensjohnston.com.