Sunday November 17, 2019
Home Lead Story US Companies ...

US Companies Say Price Hike Inevitable at China Tariff Hearing

Currently there's no country manufacturing metal baby gates outside of China

0
//
US, Companies, Pricev
FILE - A shopper is seen in the aisle of a Walmart store in Woodstock, Georgia, June 28, 2018. VOA

A broad range of U.S. companies told a hearing in Washington on Monday that they have few alternatives other than China for producing clothing, electronics, and other consumer goods as the Trump administration prepares 25% tariffs on remaining U.S.-China trade.

The comments came on the first of seven days of hearings that began on Monday, held by the U.S. Trade Representative’s Office (USTR), on President Donald Trump’s plan to hit another $300 billion worth of Chinese imports with tariffs.

Sourcing from other countries will raise costs, in many cases more than the 25% tariffs, some witnesses told a panel of U.S. trade officials from USTR, the Commerce Department and other federal agencies.

Mark Flannery, president of Regalo International LLC, a Minnesota-based maker of baby gates, child booster seats and portable play yards, said that pricing quotes for shifting production to Vietnam – using largely Chinese-made steel – were 50% higher than current China costs, while quotes from Mexico were above that.

US, Companies, Price
The comments came on the first of seven days of hearings that began on Monday, held by the U.S. Trade Representative’s Office (USTR). Pixabay

“Currently there’s no country manufacturing metal baby gates outside of China,” Flannery said.

Child safety products such as car seats were spared from Trump’s previous tariffs on $200 billion worth of Chinese goods, imposed in September 2018. But in the drive to pressure China in trade negotiations, USTR put them back on the list, along with other products spared previously, from flat-panel televisions to Bluetooth headphones.

The proposed list, which will be ready for a decision by Trump as early as July 2, includes nearly all consumer products, and could hit Christmas sales hard, particularly cell phones, computers, toys and electronic gadgets.

Marc Schneider, chief executive of fashion footwear and apparel marketer Kenneth Cole Productions, said 25 percent tariffs would wipe out the company’s profits and cost jobs. With China producing 70 percent of the shoes bought in the United States, there were no alternatives, including India and Vietnam, that could match China’s quality, price and volume, he said.

Also Read- Ethiopia Plans to Privatize Key State Enterprises

“We’re going to lower the quality of footwear, raise prices and accomplish nothing by moving it around to other countries,” Schneider said.

In a letter addressed to the USTR ahead of Monday’s hearing, clothing retailer Ralph Lauren Corp asked for apparel and footwear to be removed from the tariff list, arguing that a rise in duties would lower sales and lead to U.S. workers losing their jobs.

Jean Kolloff, owner of cashmere importer Quinn Apparel, said her reason for opposing the tariffs was geographical – the Alashan goat that produces light-colored cashmere wool is only found in China’s Inner Mongolia region.

“We searched for similar species of goat in an attempt to copy the hair from this animal in other countries or even domestically, but to no avail,” she said.

US, Companies, Price
Sourcing from other countries will raise costs. Pixabay

Deteriorating relations

The tariff hearings are underway amid a severe deterioration of U.S.-China relations since Trump accused Beijing in early May of reneging on commitments that had brought the world’s top two economies close to a deal to end their nearly year-long trade
war.

Since then, Trump raised tariffs to 25% on $200 billion of Chinese goods. The $300 billion list of products being reviewed in the hearing would bring punitive tariffs to nearly all remaining Chinese exports to the United States.

Trump has said he wants to meet with Chinese President Xi Jinping during the June 28-29 G20 leaders summit in Japan, but neither government has confirmed a meeting.

Also Read- Unintended Consequences if You Regulate us for The Sake of it: Google CEO Sundar Pichai

The list of more than 300 scheduled witnesses includes representatives from retailer Best Buy, toy maker Hasbro Inc, vacuum cleaner maker iRobot, faucet maker Moen, and other firms and trade groups in a diverse range of industries.

Not all of the witnesses on the first day of the hearing were opposed to the tariffs. Mike Branson, president of Rheem Manufacturing Co’s air conditioning division, asked Trump administration officials to close a loophole that was allowing Chinese firms to skirt air conditioner tariffs by shipping condenser and air handler units separately.

This allowed the units to be imported duty free as parts, rather than as completed units that were subject to tariffs.

Domestic manufacturers had ample capacity to make these products, Branson said. (VOA)

Next Story

Google Gives Up on US Carriers, will Roll Out its Own RCS Chat System

Plus, you'll get better group chats, with the ability to name groups, add and remove people to and from groups, and see if people haven't seen the latest messages

0
Google, US, RCS
With RCS on Android, when you and your friends message each other with new chat features, you can chat over Wi-Fi or mobile data, send and receive high-resolution photos and videos, and see if people have received your latest messages. Pixabay

Tired of dilly-dallying at the end of US telecom carriers, Google has announced to roll out its own Rich Communication Services (RCS) on Android that will replace the traditional SMS text messaging with more useful chat features.

“To make your conversations more seamless, we’ve worked on upgrading traditional SMS text messaging with more useful chat features, powered by RCS (Rich Communication Services),” Google said in a statement on Thursday.

With RCS on Android, when you and your friends message each other with new chat features, you can chat over Wi-Fi or mobile data, send and receive high-resolution photos and videos, and see if people have received your latest messages.

“Plus, you’ll get better group chats, with the ability to name groups, add and remove people to and from groups, and see if people haven’t seen the latest messages,” informed Google.

Google, US, RCS
To make your conversations more seamless, we’ve worked on upgrading traditional SMS text messaging with more useful chat features, powered by RCS (Rich Communication Services). Pixabay

Earlier this year, Google enabled the ability for anyone in the UK, France, and Mexico to get chat features in Messages.

Users of Google’s app will eventually see a notification to “Do more with Messages,” and then they’ll be able to “enable chat features” which is RCS.

Chat features are already available for some in Google Messages, and are being broadly rolled out in the US.

“If you already have Messages, you’ll also be prompted to enable chat features in the coming weeks. If you don’t have Messages, you can download it on the Play Store. We expect this service to be broadly available in the US by the end of year,” said the company.

Also Read- India Second to US in Demanding Facebook User Data, Requests Up by 37%

Google said it is committed to working with its partners, including carriers and device makers, to provide a consistent and interoperable experience for everyone on Android.

RCS is a communication protocol between mobile telephone carriers and between phone and carrier, aiming at replacing SMS messages with a text-message system that is richer and can transmit in-call multimedia. (IANS)