This new round of tariffs is considered a response to a series of tax imposition actions by the US, including plans to increase additional taxes from 25% to 30% for goods worth $ 250 billion. China's tuna, tilapia and red crab from October 1, 2019. On September 3, 2019, the United States announced its comment on the new Federal Register rate with the deadline for comment before September 20, 2019.
In addition, the October 1, 2019 timeline is also a US warning to China because it is the day Beijing will celebrate the 70th anniversary of the establishment of the Government.
However, while trade tensions between the US and China are escalating, the US President said it is expected to have a face-to-face meeting between representatives of the two countries taking place in Washington, DC at the end of the month.
China's Ministry of Commerce spokesman Gao Feng said, “The most important thing at the moment is to create the necessary conditions for further negotiations. The issue that needs to be discussed is that the US must first abolish plans to impose additional duties on Chinese goods worth US $ 550 billion to avoid escalation in trade disputes.
Meanwhile, US-based squid exporters and their customers in China are particularly annoyed by the latest tax developments. As explained by a source, in addition to the 35% tax that China imposes on squid products, this product is currently subject to an additional 27% (customs duty + value added tax) that the country has applied for many years now. Thus, this product is taxed at an aggregate rate of 62%.
Recently, the exploitation of squid is low. However, in the near future, if the catches reach higher levels, the damage caused by taxation measures will be very heavy. Meanwhile, importing squid from China into the US is not subject to tax.
