China to Cut Import Taxes as Soon as October, Sources Say

Saul Bowman
September 24, 2018

Trump may be "trying to force USA companies to change their supply chains and reduce their reliance on China", said Robert Holleyman, a partner at the Crowell & Moring law firm and a former deputy US trade representative.

China plans to reduce the average tariff rate on imports from most of its trading partners as soon as October, Bloomberg News reported on Thursday.

Trump's tariffs to sting USA businesses in China, but not force them to move back home - AmCham China Washington's latest decision to impose new tariffs on $200 billion worth of Chinese exports won't make China-based American companies relocate to the United States, but will "cause suffering" for them, the American Chamber of Commerce says. Combined with previously taxed imports, that would cover 100 percent of the products the US buys from China.

Trade organizations such as the Footwear Distributors and Retailers of America and the American Apparel and Footwear Association have lambasted the trade war since threats started looming at the start of the year - warning that the United States' reputation could be harmed globally, while rising import/export costs would be passed on to consumers.

Walmart Inc has issued a warning in a letter to U.S. Trade Representative Robert Lighthizer that it may have to raise prices due to tariffs on Chinese imports, CNN Money reported.

Ma met Trump two years ago and laid out Alibaba's plan to bring small US businesses onto its platform to sell to Chinese consumers.

In the long run higher prices for Chinese goods in the United States might damage its market share there, with negative effects on employment in China, but that's a slow process.

"More clients in the last two months are asking if we can deliver goods ahead of the scheduled time to avoid the upcoming tariffs", said Chairman Lun Leung.

The promise to further lower import tariffs came as China and the United States remained locked in a bitter trade dispute that has roiled financial markets and cast uncertainty over global supply chains.

The president had commented that he would consider subjecting an additional $267 billion worth of Chinese goods to tariffs if China retaliated.

"In fact", The Post explains, "tariffs are taxes that are paid by Americans who import goods from overseas". The National Retail Federation in the USA warned that duties will lead to higher prices and even product shortages. It is not yet revealed which products would be listed in the new tariffs.

"On China-U.S. frictions, people should make preparations for the next 20 years", Ma reiterated at the World Economic Forum in the northern Chinese port city of Tianjin.

All of this means, he said, is that the system remains stacked against the US and a system that has been in place that long that has achieved such volumes can not be changed overnight. "Others are threatening to follow suit". We're now talking about tariffs on just about half of everything we get from China.

"The new tariffs are bad news for the retail sector, especially as the latest round seems to extend the tax to a vast array of consumer goods".

One final, disturbing note on 's tariff increases is the generally positive response from Democrats.

He said that trade is not a weapon and should not be used for wars.

And radical, leftist Democratic Sen.

Let that sink in for awhile.

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