The Trump administration today ramped up its trade action against China, announcing a new round of tariffs on Chinese goods in response to what it calls China’s “burdensome and discriminatory practices related to technology transfer, intellectual property and innovation” – in short, intellectual property theft and cybercrime.
This list of goods with an estimated worth of $50 billion, includes those containing “industrially significant technologies” fundamental to China’s “Made in China 2025” industrial policy.
U.S. Trade Representative Robert Lighthizer said in a statement “We must take strong defensive actions to protect America’s leadership in technology and innovation against the unprecedented threat posed by China’s theft of our intellectual property, the forced transfer of American technology, and its cyber attacks on our computer networks.”
The new list of 818 products slated for tariff action is adapted from a previous list of 1,333 products worth $34 billion first published by the Trump administration on April 6th and will go into effect July 6th.
In addition, the USTA is currently reviewing a second set of 284 additional products worth $16 billion potentially subject to tariffs. That list is currently under review.
Challenges for manufacturers
Shifting trade policies have created an air of uncertainty among many of the nation’s manufacturers in 2018. As the Trump administration continues its import tariff campaign, domestic suppliers of tariffed goods stand to benefit.
However, manufacturers that rely on imports for the production of goods are facing a new set of challenges, scrambling to appeal for an exemption or searching for domestic suppliers.
According to IndustrySelect’s database of 400,000 U.S. manufacturers, roughly 43,000 manufacturers in the U.S. rely on imports for the production of goods.
Manufacturers are also facing a spike in new orders as U.S. manufacturing accelerates, and at the same time are facing a shortage of skilled workers to help them keep up with production.
List of products subject to Chinese import tariffs
The USTR notes that items on the list will not affect the average American consumer (no TV’s, cell phones, etc) but the full list denotes the tariffs’ major impact on a wide range of industries, from aviation and agriculture to oil/gas exploration and auto production.
Numerous types of machinery used in specific manufacturing processes are also included.
Here are some specific items on the list which may be of interest to many manufacturers:
• Parts for internal combustion aircraft engines
• Hydrojet engines for marine propulsion
• Concrete pumps for liquids, not fitted with a measuring device
• Parts of fuel-injection pumps for compression-ignition engines
• Industrial or laboratory furnaces and ovens nesoi, including incinerators, nonelectric
• Refrigerating or freezing equipment nesoi
• Storage water heaters, nonelectric
• Parts of machinery and plant, for making paper pulp, paper or paperboard
• Machinery for cleaning or drying bottles or other containers
• Can-sealing machines
• Parts of weighing machinery using electronic means for gauging, except parts for weighing motor vehicles
• Derricks, cranes and other lifting machinery nesoi, self-propelled, on tires
• Pile-drivers and pile-extractors
• Tamping or compacting machinery, not self-propelled
• Parts for offshore oil & natural gas, drilling and production platforms
• Dairy machinery other than milking machines
• Parts of machinery for finishing paper or paperboard
• Offset printing machinery, nesoi
• Metal-rolling tube mills
• Water-jet cutting machines
• Machine tools operated by light or photon beam processes, for working metal
• Flat-surface grinding machines, numerically controlled
• Grinding, sanding or polishing machines for working wood, cork, bone, hard rubber, hard plastics or similar hard materials
• Concrete or mortar mixers
• Parts of machines for manufacturing or hot working glass or glassware
• Mold bases
• Ball bearings other than ball bearings with integral shafts
• Electric rotary converters
• Lithium primary cells and primary batteries
• Motor vehicles w/diesel engine & electric motor, to transport 10 to 15 persons, incl driver
• Printed circuit assemblies for electrocardiographs
• Electric machines and apparatus for resistance welding of metal, fully or partly automatic
• Industrial or laboratory furnaces and ovens (other than microwave) functioning by induction or dielectric loss
The full list, published today by the USTD can be found here.
Seeking an exemption for new import tariffs
The USTR acknowledged the frustration of U.S. manufacturers with a reliance on imported materials, and stated its intent to provide a forum for the public petition for removing particular items. In addition, manufacturers may seek an exemption from tariffs for certain items they deem too burdensome for their business.
Global Trade Law Blog walks through the process of on obtaining an exemption from import tariffs in this helpful post.
Finding domestic suppliers
As these comprehensive tariffs are finalized in July, some manufacturers will be forced to adjust their supplier base and find new domestic partners.
IndustryNet maintains up-to-date information on over 400,000 U.S. manufacturers and suppliers of more than 10,000 products and services.
IndustryNet lists suppliers across a range of industries, producing everything from steel and aluminum to solar cells, ball bearings and printed circuit boards. Visitors can set up a free user account, build custom lists of potential suppliers, send quote requests, download catalogs, view company photo and video libraries, and more.
IndustryNet is also a direct path for U.S manufacturers to increase their visibility among domestic industrial procurers. Learn more about our marketing solutions for industrial companies.
