Posts tagged with "China"

Kudlow gets castigated by president after telling truth about tariffs

May 16, 2019

Truth-teller Larry Kudlow is in the administration doghouse this week. Donald Trump reportedly castigated his chief economic adviser after Kudlow contradicted the president publicly on Fox News Sunday—saying everyday Americans would be hurt by tariffs the extra $200 billion in tariffs on Chinese goods that the White House imposed on May 10, The Hill said.

An unidentified White House official told The Washington Post that the president and Kudlow spoke after the aide’s talk show appearance.

“Trump called Larry, and they had it out,” said the official, according to the newspaper, which added that two other sources described the exchange as cordial.

Other sources recounted that Trump repeatedly told Kudlow during the conversation  “not [to] worry about” the consequences of tariffs on U.S. businesses.

Kudlow’s remarks contradicting the president came during an interview with Fox News host Chris Wallace, who pressed him about the impact of tariffs.

“In fact, both sides will pay in these things, and of course it depends,” Kudlow told Wallace.

“The Chinese will suffer [gross domestic product] losses and so forth with respect to a diminishing export market and goods that they may need,” Kudlow added.

Trump, however, has publicly defended his trade strategy, writing on Twitter that there is “no reason” U.S. consumers should feel the effect of tariffs.

Their [sic] is no reason for the U.S. Consumer to pay the Tariffs, which take effect on China today,” he said on Twitter. “This has been proven recently when only 4 points were paid by the U.S., 21 points by China because China subsidizes product to such a large degree. Also, the Tariffs can be completely avoided if you [buy] from a non-Tariffed Country, or you buy the product inside the USA (the best idea).”

Research contact: @thehill

Saying Trump is creating an ‘economic emergency,’ China retaliates against new U.S. tariffs

September 19, 2018

Following an announcement by U.S. President Donald Trump late on September 17 that he intended to impose a 10% tax on a $200 billion list of Chinese imports, ranging from consumer goods to manufacturing materials, the People’s Republic now has retaliated in the ongoing trade war.

The Chinese Finance Ministry announced on September 18 it would go ahead with plans announced in August to tax 5,207 types of American-made goods—a $60 billion list, ranging from coffee to farm machinery. The smaller, mismatched dollar amount reflects the fact that China is running out of American goods to tax, due to its trade imbalance, NBC News reported..

The new round of tariffs is aimed at curbing “trade friction” and the “unilateralism and protectionism of the United States,” the ministry said on its website.

The new tariffs, levied at a rate of 5% and 10%, will come into effect on September 24. NBC said — the date Trump targeted for his latest round of punitive tariffs. Trump also has stated that the new tariffs will rise to 25% by January 1.

According to the network news source, Trump has repeatedly said his goal is to force partners to the table to renegotiate current trade deals that he and his supporters view as unfair to American economic and security interests. Foreign businesses have long complained that China’s protectionist policies are pushing them out of promising economic opportunities.

The Chinese Commerce Ministry said that it had been forced to react because the U.S. was creating an “economic emergency.”

Economists have warned that the escalating battle could knock up to 0.5 percentage points off global economic growth through 2020.

Research contact: @lbayly_nbcT

Without fanfare, Senate votes to abate tariffs on Chinese goods

July 30, 2018

As trade tensions escalate between the Trump administration and Beijing, the U.S. Senate with little fanfare passed legislation on July 26 that would lower trade barriers on hundreds of items made in China, CNBC reported. A version of that bill already had passed unanimously in the House of Representatives earlier this year.

With no debate, the Senate unanimously passed a bill that would cut or eliminate tariffs on toasters, chemicals—and roughly 1,660 other items made outside the United States, the business news network said. Nearly half of those items are produced in China, based on a Reuters analysis of government records.

The move is meant to neutralize a 25% tariff on up to $50 billion of Chinese goods that Trump announced in mid-June—as well as a subsequent move by China to impose a 25% retaliatory tariff on $34 billion worth of U.S. goods, including agricultural products and U.S.-made cars.

In June, CNN reported that Trump meant his tariffs on Chinese goods to penalize Beijing for stealing American technology and trade secrets. The news network said that the “tariff is targeted towards the Chinese aerospace, robotics, manufacturing and auto industries.”

According to CNBC, the White House has not publicly taken a position on the so-called Miscellaneous Tariff Bill Act of 2018. The Senate and House now need to resolve minor differences before they can send the legislation to President Trump to sign into law.

The National Association of Manufacturers has said U.S. businesses pay $1 million a day on such import duties. In a statement, NAM urged passage of the act, “to eliminate unfair, out-of-date, distortive, and anticompetitive taxes on manufacturers.”

When asked in an April 11 Quinnipiac poll if they would support or oppose “raising tariffs on products imported from China, if it causes China to raise tariffs on American products,” 51% of U.S. adults nationwide said they would oppose the tariffs and 40% said they would support them. There was a partisan divide in the results, with two-thirds of Republicans supporting Trump’s actions.

Research contact: timothy.malloy@quinnipiac.edu

Putin challenges Trump’s tariffs

July 5, 2018

Russia has requested talks with the United States on President Donald Trump’s decision to impose new duties on steel and aluminum—the first step in formally challenging the action at the World Trade Organization. Indeed, the subject may come up at the July 16 summit  in Helsinki, Finland, already scheduled by Trump and Russia’s President Vladimir Putin.

The complaint filed Monday is the seventh initiated by a WTO member against Trump’s new tariffs, following cases brought by China, India, the European Union, Canada, Mexico, and Norway, Politico reported on July 2.

Moscow’s move comes just as the Trump administration is mulling 25% tariffs on auto imports in the name of national security.

The U.S. imported $192 billion in new passenger vehicles in 2017, according to Chad Bown, a senior fellow at the Peterson Institute for International Economics.

Russia claims the U.S. duties of 25% and 10% on imports of steel and aluminum products, respectively, are inconsistent with provisions of the WTO’s General Agreement on Tariffs and Trade 1994 and the Agreement on Safeguards, Politico said.

The Trump administration imposed the duties under Section 232 of the 1962 Trade Expansion Act, which allows a president to restrict imports to protect national security.

However, rather than accept the U.S. national security rationale for the steel and aluminum duties, other WTO members are treating the restrictions as emergency “safeguard” restrictions, Politico reported. Such restrictions are allowed under WTO rules but must meet certain criteria to pass muster. Steel safeguard restrictions imposed by former President George W. Bush in 2002 were struck down by the WTO.

The EU, Canada, Mexico, China and others also have retaliated against the U.S. steel and aluminum duties, arguing that they are entitled to take such steps because the United States did not compensate them for imposing safeguard restrictions.

On tariffs, 48%  of Americans disagree with President Trump’s imposition of new levies on steel and aluminum imports, while 36% agree, according to findings of a recent CBS News poll. When asked specifically about tariffs on Canadian imports, the number of Americans who disagree rises to 62%. Fifty-eight percent of Republicans approve of the Canadian tariffs.

Research contact: @CBSNews

Americans stew over loss of influence in Middle East

May 29, 2018

More than two-thirds of Americans are alarmed that the United States is losing influence in the Middle East, according to findings of a study conducted by the Harvard Center for American Political Studies/Harris Poll and released exclusively to The Hill on May 24.

Fully 69% of the 1,347 U.S. registered voters who responded to the online poll said they believe that America is ceding influence in the region to such countries as Russia, Iran and China.

Tempers in the region have flared since President Donald Trump withdrew from the Iran pact and moved the U.S. embassy in Israel to Jerusalem, both this month.

Fifty-four percent of respondents told the researchers that America should have attempted to renegotiate the Iran deal instead of withdrawing, while 46% said that they agreed with the administration’s decision.

But there was consensus that Iran has violated its end of the bargain, the Hill reported: 65% believe that Iran isn’t sticking to the terms of the agreement, which rolled back sanctions in exchange for Iran ramping down its development of nuclear weapons.

While a majority of respondents polled didn’t back Trump’s decision in Iran, there’s far stronger support for his decision to move the U.S. Embassy. Forty percent of respondents approved, while 31 percent believed it should only have been moved in exchange for a major concession from Israel.

A near-majority of Americans also put the blame for the violence that occurred during protests in Gaza in the days surrounding the announcement on Hamas, the Palestinian terrorist group.

Research contact: @bkamisar

Trump’s tariffs on steel, aluminum raise ‘external risks’ for U.S. companies

March 27, 2018

U.S. trade policy has risen to the top of the list of “biggest external risks” facing the members of the CNBC Global CFO Council., an elite group of chief financial officers representing public and private companies from various major sectors.

Indeed, based on a quarterly poll of the council members released on March 23, more than one-quarter (27.3%) say U.S. trade policy is now the biggest risk their companies face. That’s up from 11.6% in the fourth quarter of 2017, outranking other threats that have recently ranked high among business concerns, including “threat of cyber attack” and “consumer demand.”

The CNBC Global CFO Council represents some of the largest public and private companies in the world, collectively managing more than $4.5 trillion in market capitalization across a wide variety of sectors.

The survey was conducted after President Donald Trump signed a pair of proclamations that impose tariffs on imported steel and aluminum, but before the announcement on March 18 that the United States will seek trade penalties of up to $60 billion against China for intellectual property theft.

The chief financial officers voiced strong opposition to metals tariffs, especially in the broader context: potential retaliatory moves taken by other countries. “The impact direct from steel/aluminum tariffs would be negligible,” said one CFO respondent. “The indirect impact from retaliation could be significant.”

Almost two-thirds of respondents (65.8%) say the tariffs will have a negative impact on their companies, and even more (86.9%) say they will have a negative impact on both the U.S. and Chinese economies.

The CFO Council’s outlook for GDP has been downgraded amid the increased tariff fears, including in three key global economies. Canada, China and Japan were downgraded from “improving” to “stable” by CFOs.

Still, the United States was rated as “improving” for the seventh straight quarter, while the Euro zone was seen as “improving” for the fourth straight quarter. No region was seen as worse than “stable,” a trend that has now held for five quarters.

Research contact: @DavidSpiegel

Skilled workers from abroad are avoiding America

February 21, 2018

Although skilled professionals from abroad are highly prized by American recruiters, fewer foreign workers are agreeing to sign on for employment in the United States during the Trump era, due to uncertainties about immigration and a perceived culture of rampant bias nationwide, Axios reported on February 20.

Last year, in a survey conducted on behalf of the immigration services firm, Envoy, 50% of the companies reached by The Harris Poll said they expected to increase foreign hiring.

This year, the number is even higher, at 59%. But there’s a hurdle: 33% of candidates are so anxious about U.S. immigration policy that they either refuse to accept—despite the high signing bonuses currently available—or say they will refrain from starting work until their visas are approved.

The candidates saying this are primarily from China, India and the Philippines, Harris said.

Axios reports that, according to Envoy CEO Dick Burke, 42% of the companies surveyed report that foreign hires are anxious about getting through the immigration process, and 35% say individual visa cases are in fact becoming more difficult.

As a result, a number of workers are just staying home, Burke told the news organization: “They say, ‘My own country is modernizing. I will just stay home because it’s not worth the anxiety whether I’ll get back into the country,'” Burke said.

The situation is having an impact on production. Indeed, fully 26% of companies are delaying projects because of uncertainty in immigration.

The talent gap is real. We need to check but not to throttle innovation in the United States,” Burke said.

Research contact: @envoy