Sept 1 New 15% tariff on listed Chinese goods

[dado potato]

As President Trump warned in a tweet, it is now official (published in the Federal Register) on 9/1/2019 there will be an additional 15% tariff paid by the US importers of Chinese
smart watches,
Bluetooth headphones,
flat panel televisions, and
footwear.

200 American footwear companies appealed to the Trump administration to delay the imposition of the added 15% tariff on shoes. They argued that there already is an average 11% tariff on most shoes imported from China, so 15% more would make it 26% on the cost of imported shoes.
It is understandable that they would like to be exempted from the tariff, or failing that, to delay the imposition. But it looks as though the date will be Sept 1.


Mind you, "The Chosen One" sometimes relents.


And the Federal Register states that on December 15, there will be a new 15% tariff in effect on Chinese cellphones, laptop computers, toys, and clothing.

China is retaliating with tariffs on goods from the US, and by eliminating imports of US agricultural products. Before the trade war, China was the fourth largest importer of US agricultural products. The Farm Bureau states that China imported $19.5 billion in 2017, $9.1 billion in 2018. Despite China's stated intention to reduce the amount to zero in 2019, a "small quantity of soybeans" was bought in August. The Trump administration (USDA) made $16 billion in relief payments available to producers of certain commodities. Trump has suggested that the new 15% tariffs on Chinese goods will make it possible to pay out more relief to farmers.

[JaneV2.0]

...
China is retaliating with tariffs on goods from the US, and by eliminating imports of US agricultural products. Before the trade war, China was the fourth largest importer of US agricultural products. The Farm Bureau states that China imported $19.5 billion in 2017, $9.1 billion in 2018. Despite China's stated intention to reduce the amount to zero in 2019, a "small quantity of soybeans" was bought in August. The Trump administration (USDA) made $16 billion in relief payments available to producers of certain commodities. Trump has suggested that the new 15% tariffs on Chinese goods will make it possible to pay out more relief to farmers.

Not to worry, Brazil's Bolsanaro is burning down the rain forest to make room for additional food crops. He can fill up his bolsos with the profits he makes dealing with China.

[Rogar]

Well, if nothing else maybe the increase in prices will result in less demand and sales. So less manufacturing pollution coming from Chinese plants. Or maybe the acceptable price point for sales will not be an obstacle for our prosperous economy. Other than footwear those all seem to border on luxury items to me and things some people can do without.

[gimmethesimplelife]

I wonder what this Christmas season holds for American retailers given the escalating tariffs against Chinese goods?

[dado potato]

I wonder what this Christmas season holds for American retailers given the escalating tariffs against Chinese goods?

The University of Michigan Consumer Sentiment Index is pointing in the direction of diminished spending by consumers.

July 98.4
August 89.8 (the lowest value since October 2016)

Richard Curtin, the director of the consumer survey stated: "The recent decline is due to negative references on tariffs, which were spontaneously mentioned by one in three consumers.... Trump's tariffs policies have been subject to repeated reversals and threats of higher future tariffs. Such tactics may have some merit in negotiations with China, but they act to increase uncertainty and diminish consumer spending at home."

-source: Bloomberg

Curtin mused that Trump's tendency to tweet reversals as a carrot, and threats of higher future tariffs as a stick may "have some merit in negotiations with China". In my opinion, the Chinese leadership is well aware of Trump's tactics. It may occur to the Chinese that if US retailers have the worst Christmas in decades, and there is a spike in store closures and job loss, Trump could be compelled to back down on all his demands and call it the best deal ever.

[Rogar]

My favorite talking heads had a feature on the persecution of Uighurs in China. Doing business with China from a humanitarian and environmental perspective is not like doing business with, say Germany, or maybe even some of the Indonesian countries. I'm sorry for people who depend on retail sales to support a family, but I have no little love lost for things that reduce our economic presence in China, for different reasons than Trump.

The MAGA humanitarian philosophy seems to have lost any relevance to international dealings. At least Obama gave it a little lip service. It would make a good bargaining chip for trade.

(Plus they don't have good quality control for a lot for a lot of things, i.e., cheap junk. But I guess we create the demand for it.)