Congressional Report Notes That Two-Thirds of Chinese Imports Have Higher Tariffs Now
The Congressional Research Service, in a recent report, quantified the U.S.-China trade war and estimated its effects so far on bilateral trade. It said that as of Sept. 1, about 67 percent of U.S. imports from China have additional tariffs, most 15 to 25 percentage points higher, and about 60 percent of U.S. exports to China are taxed at an additional 5 percent to 25 percent.
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The six tariff hikes under Section 301 since July 2018 have led to a 13 percent drop in Chinese imports for the first eight months of 2019 compared to the first eight months of 2018, the report said. U.S. goods exported to China fell by 16 percent during the same period. "The Trump Administration argues that by reducing U.S. demand for Chinese exports, the tariffs are an effective tool to pressure China to change its policies," the report said, but importers pay more and exporters whose products are targeted suffer.
If escalation continues, 96.5 percent of Chinese imports will be affected by higher Section 301 tariffs by Dec. 15, and 71.8 percent of U.S. exports to China will be subject to retaliatory tariffs. "Many U.S. stakeholders have been or will soon be affected by the President’s tariff actions, given the scale of implemented and proposed tariff increases," the authors concluded. "Congress may wish to evaluate the Administration’s ultimate objectives from the tariff increases, whether potential benefits justify potential costs, and whether the President’s tariff actions align with Congress’s intended use of its delegated authority."