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On the 17th local time, the Office of the United States Trade Representative (USTR) announced three notices on the exclusion list of goods subject to tariffs on China, and more than 400 items were exempted from tariffs. Unlike previous ones, this list covers three batches of Chinese goods announced by the US to impose tariffs.

　　Three batches of tariff-added goods are involved.

According to combing, this tariff exclusion list involves a total of 437 commodities, and the excluded commodities are mainly various equipment parts, organic synthetic materials, daily necessities, chemical products, textiles, mechanical and electrical equipment, chemical products, steel products, etc. These goods are distributed in the three batches of Chinese goods that have been subject to tariffs of US $34 billion, US $16 billion, and US $200 billion announced by the United States since last year.

Since December 28, 2018, USTR has published a total of 11 batches of commodity exclusion lists. According to the first financial reporter's inquiry, the first eight times have excluded 984 items, 87 items, 21 items, 515 items, 464 items, 110 items, 69 items and 10 items of goods. On September 17, USTR released three batches of exclusion lists at one time, involving the above three large quantities of goods, which had never happened before.

USTR said in its notice on the exclusion list of goods subject to tariffs of $34 billion that on September 17, 2019, USTR issued Notice 3290-F9, announcing the goods that can be excluded from tariffs. In accordance with sections 301 B, 301 c and 307 a of the U.S. Trade Act of 1974 and the recommendations of the Inter-Agency 301 Provisions Committee, the U.S. Trade Representative announced tariff exclusions for 310 of these goods. The statement said the decision also took into account "the recommendations and opinions of the advisory committee and the public on the relevant tariff exclusion products".

These 310 commodities are mainly all kinds of electromechanical instruments, equipment and parts, including pump turbines, electric equipment, engines, lifting equipment, medical equipment and optical equipment of different models and uses.

However, those included in the exclusion list of goods subject to tariffs of US $16 billion this time include 89 categories of goods such as polyvinyl chloride coils, polyvinyl chloride plates, plastic pipes, pipe and hose joints and connectors, spherical knob steel pipes, iron or steel terraces, pergolas and scaffolding, galvanized steel pipes, rotary internal combustion engines for agricultural or horticultural machinery, etc.

In addition, 38 categories of commodities, including daily necessities, chemical products, textiles, and mechanical and electrical equipment, were included in the US $200 billion tariff exclusion list. Among them, daily necessities account for about 1/3, specifically including LED lamps and lanterns closely related to the daily life of the American people, lighting accessories for gardens, courtyards and desktops, composite wood floors, cups for coffee brewing and with filtering devices, portable Single-person grills, dog safety belts, etc.

The American Chemistry Council (ACC) previously issued a statement opposing the Trump administration's plan to impose tariffs on Chinese goods. While U.S. imports of chemicals from China increased by 22.7 percent in 2018, retaliatory tariffs have curbed U.S. chemical exports to China, resulting in the chemicals trade deficit with China almost tripling in 2018, from $1.4 billion to $4 billion, the statement said. The U.S. chemical industry is a major export industry in the United States, accounting for more than 10% of total U.S. export trade.

　　Christmas goods in the column

The refresh of the tariff exclusion list is good for Chinese export enterprises, American import enterprises and American consumers.

The good news for American consumers who are going to celebrate Christmas is that a small lighting device for Christmas tree decoration is also on the exclusion list.

A survey released by the Peterson Institute for International Economics in the United States showed that among the TOP10 "Made in China" products consumed by Americans, Christmas supplies and Christmas lights ranked third and tenth respectively.

According to data from the U.S. Census Bureau, taking into account inventory demand, 80% of U.S. imports of lighting purchases are completed in August to October each year, while Chinese goods account for about 85% of these U.S. imports of lighting, and almost all of the LED lights used by Americans are from China.

In textiles, 100 per cent of polyester woven microfiber fabrics and polyester products are also on the exclusion list.

According to data from the China Chamber of Commerce for Import and Export of Textiles, China's textile and apparel exports to the United States last year were about US $10.3 billion, accounting for about 16% of China's textile, apparel and raw material exports to the United States, involving about 17000 export companies.

Rufus Yerxa, president of the National Foreign Trade Council, has said that the United States no longer has the infrastructure to produce clothing, textiles and other related products.

For the US textile industry, the partial "lifting of the ban" on Chinese textiles has at least eased the urgent need.

Industry insiders in many fields said that the announcement of the exclusion list is also good news for China's export enterprises in related fields, especially those that are currently striving for Christmas orders.

(Source: First Financial)