USTR's Proposed Chinese Tariff List Draws Industry Opposition Over CE Fears
TVs imported from China would bear an especially heavy burden under the U.S. Trade Representative’s list of products targeted for 25 percent tariffs under President Donald Trump’s March 22 memorandum accusing the Chinese of unfair intellectual property practices (see 1803220043). CTA President Gary Shapiro called the administration wrong for having “singled out TVs as one of the largest proposed categories for a 25 percent tariff.” He urged "companies and consumers to take action, make their voices heard and tell the administration just how much damage this would do." Other industry players reacted negatively, and China plans to retaliate.
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The USTR move could snare streaming devices, Bob O’Brien, president of Display Supply Chain Consultants, told us. All products classified in the 85287264 subheading of the U.S. Harmonized Tariff Schedule (HTS) would be prone to tariffs, “which is basically all TVs” imported from China, he said. Trade authorities ruled if a TV under the subheading has a port for accepting something like a Google Chrome stick, “that constitutes a device that incorporates a video recording apparatus,” and qualifies for a lower import duty than sets that don't, he said: Virtually all TVs imported from China have those.
Companies facing stiffer challenges would include Best Buy, said O’Brien. The company hails the administration’s “desire to ensure that our trade partners are using fair practices,” emailed a spokesman: “We look forward to the opportunity to share our thoughts on the proposed list of products and on how to make sure these measures do not inadvertently hurt" Americans by "causing them to pay substantially more for the consumer electronics they rely on every day.”
The Chinese Embassy in Washington said Tuesday it "strongly condemns” the proposed list of products and tariff increases. “Such unilateralistic and protectionist action has gravely violated fundamental principles and values” of the World Trade Organization, it said. “It serves neither China's interest, nor U.S. interest, even less the interest of the global economy. As the Chinese saying goes, it is only polite to reciprocate.”
The Information Technology and Innovation Foundation thinks the Trump administration “is right to push back against China's abuse of economic and trade policy, but imposing tariffs on producer goods will inadvertently hurt Americans,” said President Robert Atkinson. The National Retail Federation, though “pleased that many everyday products such as clothing and shoes are not on the list,” remains “concerned that other goods such as consumer electronics and home appliances are targets,” said CEO Matthew Shay. “This entire process creates uncertainty."
Comments are due May 11, rebuttal comments May 22. The USTR scheduled a hearing May 15 at International Trade Commission headquarters. Written requests to testify are due April 23.