It's getting harder for companies to escape Trump's China duties | Fin24
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It's getting harder for companies to escape Trump's China duties

Jul 24 2018 16:29
Mark Niquette and Andrew Mayeda, Bloomberg
Donald Trump

Republican presidential candidate, businessman Donald Trump speaks during the Fox Business Network Republican presidential debate at the North Charleston. (Chuck Burton, AP)

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US companies and industry groups are returning to Washington this week in an increasingly futile effort to get relief from President Donald Trump’s tariffs on Chinese imports.

More than 80 witnesses are scheduled to testify during the two-day hearing starting on Tuesday on the $16bn (approx. R217bn) in Chinese goods targeted for 25% duties, which could be imposed after a comment period ends July 31. The administration imposed tariffs on $34bn (approx. R453bn) of products on July 6, after similar hearings in May.

The Office of US Trade Representative has also identified an additional $200bn (approx. R2.6trn) of goods slated for a 10% duty after China retaliated in an escalating trade war, and Trump has said he’s "ready to go" with tariffs on $500bn (approx. R6.7trn) in imports - roughly the value of China’s annual goods exports to the US.

While companies successfully lobbied to remove some consumer goods from the administration’s initial list of targets and the USTR will act in good faith, there’s less flexibility because items removed must be replaced to reach Trump’s total, said John Veroneau, a partner at Covington & Burling in Washington and a former deputy US, trade representative under President George W.Bush.

"Finding replacements is becoming more challenging," Veroneau said.

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donald trump  |  trade wars  |  tariff hikes


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