(Reuters) – The latest bargaining chip in US-China negotiations to cool down a 16-month trade war is whether and how soon President Donald Trump would reduce tariffs on hundreds of billions of dollars in Chinese imports.
FILE PHOTO: A 100 yuan banknote (R) is placed next to a $ 100 banknote in this image, taken on November 7, 2010 in Beijing. REUTERS / Petar Kujundzic / File Photo
The Trump administration began imposing tariffs in July 2018 on industrial components and technology goods from China. After Beijing had reciprocated with higher tariffs on US agricultural goods, Trump struck back with more duties, many of which had already been issued and some were still under threat, which could affect the vast majority of Chinese imports by the end of 2019.
As US and Chinese negotiators approach a "Phase 1" trade, expectations are rising that at least some of these tariffs will be abolished.
China's Commerce Department and a US official said on November 7 that a deal would involve tariff reimbursements, but Trump undermined the idea after being pushed back by China Falcons in his administration and said he did not determined.
The following is a list of current and planned US duty rates for Chinese goods in reverse chronological order. Experts say that the most recent tariffs are most likely to be abolished.
DEC. 15 RATES, 156 BILLION USD "LIST 4B" here
The United States is due to raise 15% duty on December 15 to around $ 156 billion in Chinese products, including cell phones, laptops, toys and clothing known as "List 4B".
Persons briefed in the trade talks said the United States had indeed agreed not to continue this round of customs as part of the first trade agreement. A US official said the fate of these tariffs is considered part of the final negotiation of the treaty text.
CANCELED OCT. 15 RATES INCREASE
Following a round of talks with Chinese Deputy PM Liu He, Trump, in early October on a White House handshake on the interim agreement, he decided to set Chinese tariffs worth about $ 250 billion on the 15th. October did not increase goods to 30% of the already imposed rate of 25%.
If talks to complete the text lead to the collapse of the first trade agreement, Trump could reintroduce this increase. The goods concerned range from industrial components and semiconductors to furniture and building materials.
SEPT. 1 TARIFFS: 125 BILLION USD, "LIST 4A" here
The United States introduced a 15 percent tariff on goods worth about $ 125 billion on September 1, 2019, including flat-screen TVs, flash memory devices, smart speakers, and Bluetooth headphones, bedding, multifunction printers and many types of shoes.
Trump introduced these tariffs and put tariffs into effect on 15 December after a round of negotiations in late July did not lead to a significant increase in Chinese purchases of US agricultural products. According to Steven Mnuchin, the US Treasury Secretary, the Phase 1 trade agreement currently under discussion would roughly double those purchases over time from the pre-war level.
People familiar with the discussions say China has asked to cancel these tariffs on September 1 as part of the deal, and the claim is under consideration.
INCREASE IN CUSTOMS DUTY ON MAY 10
On 10 May 2019, Trump increased Chinese customs duties on Chinese goods worth $ 200 billion from 10% to 25%, following China's withdrawal from US officials retired.
The higher tariffs applied to nearly 6,000 products, which were originally taxed in September 2018, from computer modems and routers to vacuum cleaners, lighting fixtures and furniture.
The US Department of Commerce issued exclusions for hundreds of these products in September 2019, including some computer boards, laminate flooring and dog collars.
SEPT. 24, 2018, 200 BILLION CUSTOMS ACTION: "LIST 3" here
Trump levied tariffs on a $ 200 billion list of Chinese imports on September 24, 2018, following Beijing's opposition to an initial US customs salary America had reciprocated with its own customs duties in China, agricultural products and finished products.
This list of product tariffs and the two previous lists below are least likely to be reversed, say trade experts and people familiar with the talks, adding that maintaining some tariffs would maintain leverage over China for the future negotiations. Trump has stated that he will not completely withdraw the tariffs on Chinese goods.
AUG / SEPT 2018 RATES, 50 BILLION US $ "LIST 1" here "LIST 2" here "Allegations that China is systematically stealing and enforcing the transfer of American intellectual property to Chinese companies.
These initial lists consisted mainly of Chinese-made industrial components, machinery, semiconductors, and other non-consumer goods to cause pain to Chinese exporters while minimizing their impact on US manufacturers.
Originally $ 34 billion worth of Chinese "list 1" tariffs were introduced on July 6, 2018, while a second list of $ 16 billion "list 2" tariffs was introduced August 23, 2018 came into force.
Reporting by David Lawder and Heather Timmons in Washington; Edited by Matthew Lewis and Leslie Adler