About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 1 (June 19, 2019)

handle is hein.crs/govbafg0001 and id is 1 raw text is: Congressional **Research Service U.S. Trade Friction with China Intensifies June 19, 2019 Commercial relations between the United States and China are experiencing an increasing level of tension and uncertainty. In August 2017, the Trump Administration launched a Section 301 investigation of Chinese policies relating to technology transfer, intellectual property, and innovation policies deemed harmful to U.S. economic interests. In March 2018, the Administration announced it would take specified action against China in response to such policies, including increased tariffs. The Administration subsequently raised tariffs on three tranches of import products from China, (with estimated combined worth of $250 billion). China imposed retaliatory tariff increase on three tranches of imported products from the United States (with estimated combined worth of $110 billion). On February 14, 2019, President Trump tweeted that trade negotiations with China were in advanced stages and suggested that an agreement could soon be reached. However, on May 5, he tweeted that trade negotiations were going too slowly and that China was attempting to renegotiate previous trade commitments. As a result, on May 10, he ordered that tariffs on a third tranche of Chinese goods be raised from 10% to 25% (made fully effective on June 15) and that the process for increasing tariffs by 25% on nearly all remaining U.S. imports from China (estimated value at $300 billion) be started. On May 13, China announced it would increase its tariffs on many of the U.S. products listed in its third tranche (effective June 1). China blamed the United States for the breakdown in talks, claiming it had persisted with exorbitant demands and demanded concessions touching on China's sovereign affairs. Tariff Increases and Trade Both sides are experiencing trade impacts of the tariff hikes. While U.S. merchandise imports from China in 2018 rose by 6.7% (to $540 billion), over the previous year (data not shown), they fell by 13.9% during the first quarter of 2019 year-over-year, while imports covered by U.S. tariff hikes dropped by 29.9% (see Figure 1). Similarly, while Chinese imports from the United States increased by 2.4% (to $154 billion) in 2018 (data not shown), they fell by 29.3% during the first quarter of 2019. Imports of U.S. products covered under China's retaliatory tariff measures fell 36.6% (year-over-year). (See Figure 2.) This has raised concerns that China is increasingly turning to non-U.S. suppliers who are not subject to the higher tariffs. Congressional Research Service https://crsreports.congress.gov IN11135 CRS INSIGHT Prepared for Members and Committees of Congress

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most