China-US Trade Tensions: US holding public hearings over tariffs on Chinese goods
Updated 21:59, 25-Aug-2018
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Public hearings continue in the US capital, over another round of potential tariffs on Chinese goods. Over three hundred companies, mostly from the US, are attending the six-day hearings, which started on Monday. They will give testimony over the proposed 10 to 25 percent of additional tariffs, on 200 billion US dollars' worth of Chinese goods. The tariffs could take effect as early as next month. The list includes seafood, furniture, and plastics. Many are warning the move will affect US consumers much more than previous rounds. CGTN White House correspondent Nathan King has the details.
Belle Chao rushes to the airport after giving testimony, but not before telling CGTN that the proposed tariffs are already hitting her disposable glove business hard.
BELLE CHOU, PRESIDENT SHEN WEI (USA) "Since the trade talks in May our projected sales for this year is supposed to be 25% growth, but as of today, we are experiencing a 10% loss in our business. That is because customers are hesitant to accept other substitutes from other countries."
Belle is Chinese American, based out of California. Here today are other Chinese citizens presenting their case.
Xiao Zhiyuan's wood flooring business is in Jiangsu province north of Shanghai, but national distinctions don't matter that much to him in this globalized world. Tariffs are going to hurt nearly everyone, he says.
XIAO ZHIYUAN JIANGSU BEIER DECORATION MATERIALS COMPANY "Very bad because the whole industry is very labor intensive and we have a lot of competition from local, China local and from Europe and USA, so our margin is very low. With an extra 25%, it's a disaster for our flooring."
Tariffs will hit this Chinese flooring business, but ultimately the tariffs will be paid by its U.S. customers. Hikes as high as 25% will hit other U.S. company bottom lines and threaten jobs. That's the overwhelming message from these hearings -- no matter where the businesses are based.
NATHAN KING WASHINGTON DC "Most of the companies at this week's hearings are asking for products they rely on to be exempted from the next round of tariffs. They are unlikely to be successful. So far, the Trump administration has only granted a handful of exemptions out of tens of thousands of applications. Current U.S. trade policy may have a lot of critics, but the Trump administration is sticking to it -- at least, for now. Nathan King, CGTN."