Commission Determines Dumping Margin based on Accessible Data
Trade Tensions Take a Breathe: Partial Tariff Exemptions Amid Ongoing Conflict
In a slight relief for some U.S. businesses, China has decided to exhale during its trade battle with the U.S., offering exemptions for certain imports from tariff hikes. The Chinese Ministry of Commerce is currently compiling a list of goods that could be exempt from duties. details remain scant, as the Chinese government declined to comment on specifics.
At a press conference, Foreign Ministry spokesman Guo Jiakun stated, "I'm clueless about tariff exemptions." Reinforcing that, "There's no consultation or negotiation going on between China and the U.S. over the trade conflict."
On the other hand, the American Chamber of Commerce in China was more forthcoming. Michael Hart, the chamber's president, declared, "China's asked our companies which U.S. products they import, that they can't find elsewhere, and would disrupt their supply chain." Some member companies have already imported goods this week, free of the new tariffs – even pharmaceutical firms.
A list of product categories rumored to be exempt from tariffs has circulated on social media and among companies and industry associations. Although Reuters couldn't authenticate the list, it includes commodities such as vaccines, chemicals, and jet engines. According to Huatai Securities, these import groups accounted for around $45 billion worth of imports last year. The Ministry of Commerce and the customs authority remained unavailable for comment.
Meanwhile, Safran, a French aerospace and defense company, celebrated tariff exemptions for some aircraft parts from China. During a conference call, Olivier Andries, CEO of Safran, beamed, "We learned yesterday evening that China has decided to waive taxes on engines, landing gear, or engine nacelles. This shows that the situation is incredibly dynamic." Safran manufactures engines in partnership with GE Aerospace for Boeing, Airbus, and Comac, the Chinese aircraft manufacturer.
The European Union Chamber of Commerce in China is also lobbying for tariff exemptions but is yet to receive a response. Jens Eskelund, the chamber's president, emphasized, "Many of our member companies are significantly impacted by tariffs on critical components imported from the U.S."
China aims to fortify domestic companies and workers hit hardest by U.S. tariffs. A statement from the Political Bureau, the highest decision-making body of the ruling Communist Party, read, "We will strive to stabilize employment, companies, markets, and expectations." Specifically, unemployment insurance funds heavily impacted by tariffs can be refunded more generously, and banks' interest rates and reserve requirement ratios will be reduced in a timely manner.
"Beijing doesn't seem in a rush to implement major economic stimulus measures just yet," Zhiwei Zhang, chief economist at Pinpoint, noticed. "It needs more time to evaluate the gravity of the trade shock."
[Source: Reuters, written by Rene Wagner, edited by Sabine Ehrhardt]
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- Huatai Securities suggests that the exemptions from tariffs on imports such as vaccines, chemicals, and jet engines, which accounted for around $45 billion worth of imports last year, are likely to benefit some U.S. businesses, as these goods are hard to find elsewhere and would disrupt their supply chain.
- Tariff exemptions on certain imports from tariff hikes, which were announced by China, have allowed some pharmaceutical firms to import goods this week without the new tariffs, indicating a potential positive impact on the pharmaceutical industry's supply chain.
- In the wake of the tariff exemptions, technology companies like Safran, a French aerospace and defense company, are likely to benefit, as they can now import aircraft parts, such as engines, landing gear, or engine nacelles, from China without incurring taxes.
