THE TRADE FEUD STARTS: China and the US Have Started a Tariff Feud in Earnest. China On

Trade News – 7 April 2018

THE TRADE FEUD STARTS: China and the US have started a tariff feud in earnest. China on Sunday retaliated against US steel and aluminium tariffs by imposing tariff hikes on 128 items of US goods including fruit, wine and pork. The US published its own list on Tuesday in response to China’s forced transfer of technology. It invited comment on a list of 1300 items ranges from nuclear reactors to cars and golf carts. China retaliated within hours with 25% tariff penalties on 106 items including cars and soybeans.

AUSTRALIA EXTENDS STEEL INQUIRY: The Anti-Dumping Commission has again extended an inquiry into the alleged circumvention of dumping duties on steel reinforcing bar. The new deadline is April 27. It is alleged the impact of dumping duties were avoided by a Korean supplier lowering export prices.

US LAUNCHES VIETNAMESE DUMPING & SUBSIDY INQUIRY: The US has launched an anti-dumping and subsidy inquiry into laminated woven sacks imported from Vietnam. The inquiry follows complaints by US producers suggesting dumping margins of up to 292% and the existence of 19 subsidy programs.

AUSTRALIAN STUDY SUGGESTS BIG JOB LOSSES FROM TRADE WAR: A study by KPMG suggests Australian job losses of up to 285,000 full-time positions under one of a range of global trade war scenarios it has studied. The study suggests retaliation to US tariffs would cause economies such as Canada, UK and EU27 to tip into recession. Analysis shows these economies could not afford any trade war with the US.

TAIWAN SEEKS TO AVOID US-CHINA FALL-OUT: President Tsai has unveiled a new economic directive in a bid to insulate Taiwan from US-China trade frictions. It calls for more local R&D, innovation and manufacturing, accelerated investment to boost domestic demand and a broadening of export markets.

INDIA’S TARIFFS UNDER FIRE: The US has taken aim at India’s tariff policies saying it maintained some of the world’s highest tariff rates. The USTR, in a trade review of 64 countries, said India’s large gap between WTO bound and applied tariff rates allowed it to make frequent adjustments to protect local producers. Vietnam was also criticised for the significant trade disruptions caused by its automotive import rules.

TRUMP & ABE TO TALK TRADE: Trade will be on the agenda when President Trump and Prime Minister Abe meet in Florida on April 17 and 18. The White House said the leaders would explore ways to expand fair and reciprocal trade between the US and Japan. An agreement to study a bilateral FTA is possible.

AUSTRALIAN EXPORTERS GET TARIFF CUTS IN JAPAN: Beef, honey, oranges and handbags were among the Australian goods that benefitted on April 1 from tariff cuts by Japan. The reductions were part of a 5th round of tariff cuts under the Japan-Australia Economic Partnership Agreement.

CANADA BRINGS UNIONS TO THE TABLE: Prime Minister Trudeau has responded to the US steel and aluminium tariffs by bringing forward a range of actions to prevent trade diversion of steel and aluminium impacting local jobs. This includes unions gaining standing to participate in trade remedy proceedings.

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