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August 6 2018

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August 6 2018 | The Journal of Commerce 33 Government (NRF) said in a statement. "The way things are shaping up, it may be too late, but we hope the administration changes course before we lose the momentum from tax and regulatory reform and return to an era of high prices, job loss, and negative growth in our economy." Higher costs threatened US tari•s on Chinese imports are threatening to not only increase costs for shippers, but also force them to pay more for the equipment they use since chassis and containers are also exposed to the trade actions. The situation remains complex and fluid as the United States on July 6 placed tari•s on $34 billion worth of goods from China, including a 25 percent duty on imports of fork- lifts, material handling equipment, and related parts. Another $16 billion in tari•s would include a 25 percent tax on international and domestic shipping containers, subject to a public comment and review period. The government also wants to place a THE TRUMP ADMINISTRATION'S newest plan to impose $200 billion of tari•s on Chinese imports would expand the volume exposed by more than a third of inbound container- ized trade with China, a sharp esca- lation of the 5.3 percent of imports exposed to the tari•s that took ef- fect July 6. Even more pain is on the way for US importers if President Donald Trump follows through with his threat made on July 19 to expand tari•s to all of the roughly $500 billion worth of Chinese imports to the United States. The new and formally planned tari•s, not those part of Trump's recent threat, make up 37.3 percent or 4 million TEU of US imports from China and are still subject to public comment and government revision. Along with the $34 billion that went into force July 6, and the $16 billion still pending, the new tari•s bring the potential volume of US imports from China impacted by tari•s to 47.5 percent or 5.1 million TEU, according to an analysis of data from PIERS, a sister product of The Journal of Commerce within IHS Markit. "Now is the time to get back to the negotiating table with China while working through a global coalition that shares our concerns," the National Retail Federation 10 percent duty on container chassis in a package of $200 billion in tari•s also under review. If the tari•s are enacted, they would trickle down to beneficial cargo owners (BCOs) since most of the equipment is built by China International Marine Containers (CIMC). Chassis providers would pay a 10 percent tari•, and container providers could pay 25 percent more, so daily rental rates and contractual lease rates would cover the cost. The due date for public comment on this latest round of tari•s is Aug. 17, with the public hearing dates set for Aug. 20-23, some point after which the tari•s will take place. A similar public comment period and hearings accompanied the first round of $50 billion in tari•s, after which the percentage of cargo impacted increased 1.5 percentage points. Retaliation not yet known China, as it does not import $200 billion in goods from the Unit- ed States, has not yet announced how it will retaliate. Previous retaliation against US exports was equivalent to the tari•s on imports the United States levied. Volume of the targeted commod- ities rose 7.3 percent last year, led by a 7.8 percent increase to 248,756 TEU in the top commodity of plastic articles not elsewhere specified or indicated (NESOI), a 14.6 percent increase in auto parts and accesso- ries to 126,176 TEU, a 13.8 percent increase in upholstered wooden frame chairs to 85,098 TEU, an 8.5 percent increase in metal furniture NESOI to 8.5 percent, and a 14.4 percent increase in saddle harnesses and parts to 76,253 TEU. The tari• list is extensive and touches on everything from bicycles and refrigerators to chemical prod- ucts and rare earth minerals. The list also includes chassis used for transporting containers, and gantry cranes, adding to the pain for transporters and shippers, as the $34 billion in tari•s includ- ed forklifts and material handling equipment and parts. Chassis providers have been buy- ing new chassis this year with the latest safety features such as LEDs, radial tires, and anti-lock brakes. TRAC Intermodal bought 8,000 Tari˜ exposure widens Tari˜s would hit a third of imports from China and raise chassis and container costs By Dustin Braden and Ari Ashe "The way things are shaping up, it may be too late." International | Washington | Customs | Security | Regulation

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