US importers stuck with latest Trump tariffs in China


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But they are forced to pay duties if a product imported from China is included in Trump's latest round of tariffs in September, worth $ 200 billion worth of goods. including food seasonings, hats, furniture, network routers and industrial machinery parts.

The exemption application process has not yet been put in place by the administration, nearly a month later, despite a new appeal from 167 congressmen.

"The absence of such a process for this most recent list is a blatant omission, especially because of its size compared to the first two lists," wrote the bipartisan group of House members in a letter sent to the US Trade Representative this week.

The US Trade Representative's office told CNN that he had no announcements for the opening of the exclusion process at the moment. In the previous two sets of tariffs on Chinese products, the USTR announced the establishment of an exclusion process at least a week before the entry into force of the duties customs.

"It would be nice to have the opportunity to speak on behalf of our industry, to explain how we do not have the easy option of changing production," said Tiffany Zarfas Williams, owner of the Lubbock Luggage Shop with her husband in Texas. .

Zarfas Williams estimates that 84% of the products currently in the store come from China, and most of them – comprising All backpacks, briefcases and luggage – were hit with a 10% fee.

She said that her biggest seller had already raised her prices and that she had to pass it on to her customers.

China's economy is experiencing the slowest growth since the financial crisis

Trump has repeatedly suggested that China pays tariffs, saying it would bring "a lot of money" into the coffers of the United States. But tariffs imposed on foreign goods act by making these products more expensive, which creates similar conditions for similar domestically produced items – and they are paid for by US importers, which may drop or reduce their profits.

"Some companies can absorb a 10% tariff, but for others, a 10% increase would reduce all their profits," said Tom Gould, senior director of customs and international trade at Sandler, Travis & Rosenberg.

"They are absolutely frustrated that this process of exclusion is not in place," he said.

The renegotiation of business practices has become a central principle of the Trump presidency. He advanced with rates, even at the cost of the loss of his leading economic advisor, Gary Cohn, who resigned following a fierce disagreement over tariffs on steel and aluminum. .
Trump has argued that its tariffs have managed to put pressure on the countries for them to negotiate. Earlier this month, he ridiculed the anti-tariff politicians by calling them "babies" in his remarks about the new trade deal with Canada and Mexico, which he said would not have occurred without the customs duties.
But negotiations with China got bogged down after the latest round of tariffs came into effect.
His government imposed a 25% tariff on Chinese goods of $ 34 billion in July and $ 16 billion in August. The latest series of tariffs in China started at a rate of 10% and is expected to increase to 25% by the end of the year.

During a phone conversation with reporters last month, a USTR official said the proposed list of goods for this milestone had been released in July, giving businesses nearly six months to prepare before the tariff does not increase to 25%.

The Treasury again ignores China as a currency manipulator

The Trump administration wants to put pressure on China so that she stops engaging in what he calls unfair trade practices, but has created an exclusionary process aimed at preventing companies from putting American companies at a competitive disadvantage.

The exclusion process is available to importers concerned with the first two sets of tariffs on Chinese products, but this process has not been quick for companies looking for relief. .

None of the approximately 3,000 exclusion requests submitted to USTR to date have been accepted. About 500 people were refused, according to USTR documents.

When evaluating a request, the USTR examines whether the product is only available from China, if the tariff would cause "serious economic harm" to the company and if the product in question is of strategic importance for China's industrial programs.

An exclusion provides a break only for a year, but it could give the company time to find another provider. This process will probably take several months, if not longer, if a new plant is to be installed outside of China.

Some industries have completely avoided the problem after the USTR removed from the most recent list nearly 300 items, including smart watches, bike helmets and high chairs, following a period of time. public consultation held before their entry into force.

Among the winners, Apple, which was spared after lobbied to remove certain items. It has barely failed to pay fees on the Apple Watches and Air Pod watches.

But Zarfas Williams does not have the resources of a big company like Apple.

"I think everything will be fine for Christmas, but if the fare increases by 25% on January 1st, it will be a different story," said Zarfas Williams.

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