The $200 million product tariff plus the next month will see a slight change in the list of pharmaceutical products.

Medical Network September 19th, September 18th, the Information Office of the Ministry of Commerce issued a document saying that the US side disregarded the overwhelming opinions of the majority of the international and domestic, and announced that it will impose a 10% tariff on the US$200 billion Chinese exports to the US from September 24. , and then other tariff escalation measures.

1. From next week (September 24th), a 10% tariff will be imposed on Chinese products exported to the United States worth about 200 billion US dollars;

2. Increase the tariff rate of the above products to 25% from January 1, 2019;

3. If China takes retaliation against US farmers or other industries, it will immediately launch the 'third stage', which imposes tariffs on Chinese products of about $267 billion.

The latest 200 billion tax collection list released on September 17th, US time, totals 194 pages. The previously mentioned herbal ginseng, raw materials such as phospholipids commonly used in the food and dietary supplement industry are included. According to Teyi Information, the US government will The delay in raising the tariff rate to 25% until next year is an opportunity to adjust and find alternative supply chains for US companies.

The $200 billion product list dates back to July 10. The US Trade Representative (USTR) office publishes a 195-page $200 billion product list that includes chemicals, health care products, electrical appliances, and more. High-end manufacturing industry, including consumer goods such as food, furniture, etc.

The $200 billion list of goods is slightly different than the one announced in July. After seven weeks of announcements, hearings and extensive feedback opportunities, USTR removed 297 product categories from previous tax collections.

It is reported that the list of goods worth 200 billion US dollars involves 6031 products, accounting for 38% to 46% of China's total exports to the United States in 2017. At the telephone briefing held on September 17, a senior Trump government official It is said that nearly 300 tariff lines in the latest tariff list have been removed from the original list, and some sub-categories under the specific breakdown have been removed from the list, including specific consumer electronics such as smart watches and Bluetooth devices. , specific chemicals, textiles, agricultural products, some safe and healthy products, as well as rubber, plastic gloves, hospital hygiene products, etc.

In addition to removing these products, there are no new items added to the list, but the value of China's export commodities involved remains unchanged at US$200 billion.

It is worth noting that the pharmaceutical and health care products companies that conduct product self-examination should note that the customs codes in the list are all US Customs codes, which are not completely consistent with the customs declaration codes of Chinese exporters. Please check the top 6 and confirm according to the product description. Whether the product is included in the list and reconfirmed with the US customer if necessary.

The United States has repeatedly adjusted the list of tariffed products in China.

Prior to this, the United States has imposed tariffs on Chinese products worth US$50 billion. According to the statistics of the Ministry of Commerce, China imported US$130.37 billion from the US and US$505.60 billion to the US for the whole year of 2017. This means nearly half of China. Customs exports to the United States are subject to tariffs, of which $50 billion is subject to a 25% tariff, and $200 billion is subject to a 10% tariff from September 24. It is raised to 25% by the end of the year.

Specific to the pharmaceutical industry, in the June tax collection list, only 22 medical device products were included, and medical device products were reduced by more than half, and drug And some low-end medical devices have been removed, mainly retaining high-end medical device products, such as nuclear magnetic resonance, monitors, ultrasound, X-ray, electrocardiographs, etc. The reason is that 'taxation may lead to a large number of China medicine Products abandon the US market, and suppliers from other countries need to pass the FDA's long approval process and cannot fill market demand in a short period of time'.

'The United States removes all APIs and preparations from the taxation list. The main reason is that the US pharmaceutical industry is concentrated in the field of innovative medicines, and China is the world's largest exporter of APIs. The tax on Chinese APIs will affect US medicines. Supply. 'A research report by Yuan Tai Research pointed out.

And reserved for high end medical instruments High tariffs are imposed. For many Chinese medical device manufacturers who have just stood still in the international market, the impact is not small.

The reporter noticed that Chinese medicine Health care products According to the data of the Chamber of Import and Export, in 2017, the export of medical devices ranked first in Guangdong, accounting for 27.59%, of which Shenzhen medical equipment exports accounted for half of Guangdong's total exports. The United States is the largest export destination of medical equipment in Shenzhen, and exports in 2017. The amount exceeds 10% of the total output value of Shenzhen. The impact is obvious.

The tariff increase policy is put on the ground, this part of the cost must be shared by all links of the industrial chain. For production enterprise In terms of whether or not there is the ability to convert the cost of this part of the crop, it is fundamentally dependent on the competitiveness of the products it exports. In addition, for Chinese medical device manufacturers, the price is a big advantage in expanding overseas markets. If it is a homogenized competition, it needs to rely on low prices to grab the market, or to a certain extent. 'There are some analysts in the industry that it is necessary to shrink in the US market or become a high-performance medical device manufacturer in China.

In response to this new round of tariffs by the US, the Chinese Ministry of Commerce responded today that in order to safeguard its legitimate rights and interests and the global free trade order, China will have to carry out counter-production simultaneously. The US is determined to impose tariffs, which has brought new differences to the negotiations between the two sides. Certainty. I hope that the US will recognize the possible negative consequences of this behavior and take convincing means to correct it in time.

It is worth noting that, according to the China Times, while the list of 200 billion tariffs was announced, the US further proposed that if China retaliates against US farmers or other industries, it will immediately launch the 'third stage', about 267 billion US dollars. The Chinese products are subject to tariffs. If this statement is fulfilled, it means that the United States will impose tariffs on all goods imported from China under the statistical system last year.

For China, it is also preparing to further open up the pharmaceutical market, seeking to cooperate with neighboring India and take measures to give Indian pharmaceutical companies greater market access.