Sunday, December 6, 2020

Will there be a trade war with China over twist-ties?


 

 

 

 

 

 

 

 

 

 

No, there will not. At BBC News on November 25, 2020 I heard a report that was described in an article titled US-China trade war: Trump gives one last twist. It was based on a press release on November 24, 2020 titled U. S. Department of Commerce issues affirmative preliminary countervailing duty determination for twist ties from China. They decided that the undervalued Chinese currency was subsidizing exports of that product, so a tariff of 122.5 percent should be imposed. Twist-tie producer Bedford Industries in Worthington, Minnesota had filed a petition. They claimed the amount of imported  twist-ties was $6.4 million in 2017, $6.89 million in 2018, and $4.15 million in 2019.

 

How much did twist ties contribute to the U.S. trade deficit with China in 2019? According to another article by Lucia Mutikani at Reuters on February 5, 2020 it was $345,600 million. 4.15 million divided by 345,600 million is 0.000012 or just 0.0012 percent.

 

There are two articles by Josh Zumbrum at the Wall Street Journal, one on October 11, 2020 titled U. S. China trade war gets wrapped up in twist-ties, and a second on November 25, 2020 titled U. S. puts tariffs on Chinese twist-ties.

 


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