Heavy! The United States restores tariff exemptions for 352 items of Chinese imported goods!
On March 23, local time, the Office of the United States Trade Representative stated that it would restore tariff exemptions for some Chinese imported goods. This tariff exemption involves 352 of the 549 previously pending products. This regulation will apply to goods imported from China between October 12, 2021, and December 31, 2022. Exemptions for 352 of the 549 goods exempted from the additional tariffs imposed on China under Section 301 will be restored, including seafood, certain chemicals, textiles, industrial parts, electronic products and consumer goods.
US-China trade tariffs
In the early morning of March 23, 2018, the United States officially fired the first shot on the Sino-US trade battlefield! Since then, the United States has announced four additional tariffs on my country. The first time was 16 billion, the second time was 34 billion, the third time was 200 billion, and the fourth time was 300 billion. Reuters reported that the 352 tariff exemptions covered this time cover a range of Chinese imported goods initially estimated to be worth US$370 billion.
For the textile market, since the start of Sino-US trade, the speed of end-customer orders has begun to slow down, thus affecting the order-taking speed of textile bosses. Since the second half of 2018, the textile market has seen a clear decline. From the upstream bulk commodities to the downstream gray cloth, printing and dyeing end, all have been affected to varying degrees.
The impact of the Sino-US trade war on my country’s textile industry
In terms of polyester raw materials, the futures are also extremely vulnerable to the global economic downturn due to the US’s repeated changes in trade trends. This has led to the unstable trend of crude oil, PTA, and ethylene glycol in recent years, which is prone to skyrocketing and plummeting, and cannot provide a stable cost support for polyester filament.
In terms of weaving, in past surveys, textile bosses almost unanimously believed that the increase in tariffs caused by the Sino-US trade war was the main reason for the “cold” of the textile foreign trade market. Many foreign trade bosses said that orders have shrunk severely, but it is not only foreign trade companies that are affected, but the domestic market is also affected. The global economic environment is not good, and end customers have tight funds on hand. Domestic end customers have also reduced order quantities and prices, and even the account period has begun to extend.
The person in charge of a foreign trade company in Wujiang area said that since the Sino-US trade, American orders have gradually decreased, and the number of proofing and testing samples has decreased compared with previous years. Now there are almost no American orders.
U.S. exemption from China tariffs benefits textile industry
The positive news about Sino-US trade will undoubtedly give the textile market a shot in the arm. Especially in today’s market, under the influence of intensified geopolitical conflicts, severe COVID-19 epidemic, and downward pressure on the economy, the traditional peak season has disappeared and terminal demand has slumped. Nowadays, the gradual liberalization of Sino-US trade will stimulate the global economic market, global inflation pressure will be alleviated, and terminal demand will naturally gradually recover. For the textile market, this will be beneficial to future exports and will provide more opportunities to receive orders.
This tariff exemption serves as proof that China is critical to global supply chains that benefit American businesses and American consumers. In the current international environment, the world should strengthen cooperation. Tariff exemptions can reduce consumption costs and promote international trade. When Sino-US trade relations are tense, Southeast Asian countries have become substitutes for Chinese textiles. However, China’s title of “manufacturing power” cannot be underestimated, and it is difficult for Southeast Asian countries to replace it. Now that there are great benefits in foreign trade, orders taken away by Southeast Asian countries in the past two years may return to the market again.
Summarize
Most textile companies still lack confidence in the entire trade market this year. Factors such as poor terminal demand, overcapacity, and increased competition are unanimously considered to be the reasons why the market is difficult to improve. The root cause is the “remnant poison” left by the Sino-US trade war and the new crown epidemic. Now the whole world is working together to “remove the virus”, and we will eventually defeat the “virus”!
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