The Joe Biden-led new US government is continuing with the Section 301 tariffs on finished apparel and textile imports from China. Tariffs were first imposed by the US in May 2019 to address intellectual property theft and other predatory trade practices by China. Since then, a number of tariffs and counter tariffs were imposed on import of goods.
However, due to the COVID-19 pandemic, the US government gave exclusions on some Chinese products, including textiles and apparel, which have now been extended till March 31, 2021.
Meanwhile, the Chinese government has reduced sliding tariffs on cotton cargoes imported under additional quotas. It has increased the number of products with lower than MFN tariffs and imported under temporary import tariffs from 859 earlier to 883 from January 1, 2021. The lower sliding tariffs would reduce the cost of importing cotton fibre into China, according to Fibre2Fashion’s market analysis tool TexPro.
On the other hand, the US residents and businesses have received more than $72 billion in additional tariffs on products after the China 301 tariffs were put into place. It affected the money in the pockets of US residents, less speed of US manufacturing, and decreased competitiveness for American businesses.
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