After the stock market closed on the afternoon of September 17, US Eastern Time, US President Trump officially announced that A 10% tariff is imposed on 200 billion products produced in China, which takes effect on September 24th one week later. This tax rate is implemented until the end of the year. The tax rate will increase to 25% from January 1, 2019. The 200 billion tariff will eventually come. Up Trump also said that if China takes revenge to harm 'American farmers and other industries', the United States will impose tariffs on China's 267 billion goods. The reason for taxation still refers to China's 'unfair trade behavior', such as Intellectual property and technology transfer. Affected by this news, the offshore renminbi fell below 6.89.
Previously, the United States had imposed tariffs on Chinese products worth $50 billion. According to the statistics of the Ministry of Commerce, China imported 130.37 billion U.S. dollars from the United States and 505.60 billion U.S. dollars to the United States in 2017. This means that nearly half of China’s exports to the United States Export products are subject to tariffs, of which US$50 billion is subject to a 25% tariff, US$200 billion is subject to a 10% tariff from September 24, and increased to 25% at the beginning of 2019. The Ministry of Commerce of China has indicated on August 3rd. In order to defend China’s legitimate rights and interests in the continued violation of international obligations by the United States, the Chinese government relies on the "People’s Republic of China Foreign Trade Law" and other laws and regulations and the basic principles of international law to treat 5,207 tax items originating in the United States. $60 billion worth of goods, plus 10% or 5% of tariffs, implemented at 12:01 on September 24, 2018.
This announcement of the final implementation of the 200 billion product list will exclude Apple and Fitbit's smart watches, as well as consumer goods such as bicycle helmets, child car seats and other consumer goods. However, China's exports to the United States seafood products were not spared.
China's tax collection list covers a wide range of products, from food to daily necessities, including production materials, including meat, seafood, berries, coffee and tea imported from the United States, daily necessities such as folding umbrellas, footwear, and hats. , kitchen supplies, production materials such as glass, stainless steel, etc.
Since the first two rounds of increased tariff policy, the three major varieties of polyethylene: LLDPE, LDPE, HDPE (tax number: 39014020, 39011000, 39012000) are all listed. According to previous years data, from the United States imports Ethylene products account for about 5-7% of the total domestic imports of polyethylene, which has a limited proportion and has little impact on the domestic supply of imported materials. In addition, the total amount of polyethylene exports in China is small, and the quantity exported to the United States is smaller. The export impact is even smaller. However, the list of mutual tariff increases between China and the United States covers a wide range of commodities, including daily necessities, textiles, clothing, agricultural products, and seafood. Among them, some of the daily necessities are the main downstream classifications of polyethylene. Export enterprises may have a more direct impact. In addition, the packaging industry downstream of polyethylene will also reduce demand due to the reduction of export products.
The trade deficit is one of the main conflicts between the Sino-US trade wars. Due to the expansion of the list of US taxable products, the related logistics enterprises that provide cross-border transportation and warehousing services are linked. Under the extreme assumption, if China exports to the United States All stopped, the most impact on furniture, electronics, textiles and leather products, electrical equipment manufacturing, output fell more than 5%. The decline in furniture output exceeded 15%. In addition to the above-mentioned most affected entity manufacturing The retail, logistics and other enterprises that provide services to these enterprises will be affected by the association.
Sino-US trade wars continue to escalate. In the short term, the direct impact on the polyethylene industry is limited. Even if the increase in tariffs has a direct impact on domestic polyethylene downstream products companies, there may be new breakthrough solutions under policy and interest balances, such as The re-export trade of commodities and other reasonable avoidance of high tariffs, but the appreciation of the US dollar, the weakening of the renminbi, the negative sentiment of the international economic situation has a far-reaching impact on the entire financial environment.