Trump suddenly said that on Friday (May 10), the tax rate on $200 billion worth of Chinese goods will be increased to 25%.

Trump sent two tweets that read:

For nearly 10 months, China has been paying tariffs at 25 percent on $50 billion worth of high-tech goods and 10 percent on $200 billion worth of other goods, and these increased taxes are part of a huge economic achievement for the United States. For those that are taxed at 10 percent, the rate will rise to 25 percent on Friday.

A further $325 billion worth of imports from China, which have not yet been taxed, will soon be taxed at 25%. The cost impact of these levies is minor and largely borne by China.

Trade talks with China continue, but too slowly as they try to renegotiate. No chance!

review

According to recent media reports, the 10th round of China-Us high-level Economic and Trade Consultation was held in Beijing from April 30 to May 1. Liu He, Vice Premier of The State Council and the Chinese leader of the China-Us Comprehensive Economic Dialogue, participated in the meeting with US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.

Following the meeting, statements from both sides referred to 'substantial progress', particularly in the areas of intellectual property rights and forced technology transfer, while doubts and differences remained on enforcement mechanisms.

Us Treasury Secretary Steven Mnuchin said China and the US held 'productive' trade talks in Beijing on the same day, Bloomberg reported. He hopes to make 'substantial progress' with Chinese negotiators in the next two rounds of trade talks.

As scheduled, the 11th round of negotiations will be held in Washington on May 8. In this negotiation, the two countries will have final consultations on implementation details.

However, what appeared to be a softening of the situation was shattered by two tweets from Trump in the early hours of this morning.

The author carefully read the tweet and observed that in addition to expressing dissatisfaction, Trump also implied that the 11th round of negotiations is the 'deadline'!

influence

Sino-us trade friction caused a lot of stir last year, so that many enterprises are shrouded in the haze of 'high price tax'.

In this way, Trump's two tweets, on the one hand as a threat, on the other hand, there is a sense of urging.

It should be noted that in August last year, when the United States imposed tariffs on $200 billion of Chinese products, China also imposed tariffs on American imports as a counterattack. If the two countries can agree on areas such as intellectual property, technology transfer and cyber attacks, everyone will be happy.

If the 11th round of negotiations, scheduled for May 8 in Washington, fails to reach agreement, the exchange of tariffs could continue or even escalate. By then, the semiconductor industry will be hit hard.

Counterattack

The issue of tariffs has already set off a 'storm' in the components industry last year. What components may be directly affected by the storm?

In order to defend free trade and the multilateral system, and defend its legitimate rights and interests, China has to impose additional tariffs on about US $60 billion of listed goods since 12:01 a.m. on September 24, 2018. It includes many component products, such as resistors, capacitors, semiconductor components and thyristor switching components, flash memory and so on.

Read the relevant documents and find that The radiation range includes chip tantalum capacitors, chip aluminum electrolytic capacitors, other aluminum electrolytic capacitors, single-layer porcelain capacitor, chip multilayer porcelain capacitor, other paper or plastic dielectric capacitors, other fixed capacitors, other variable or adjustable (fine tuning) capacitors, synthetic or film fixed carbon resistors, rated power ≤20W Chip type fixed resistor, rated power > 20W Potentiometers, various resistor parts, flash memory without recorded information, LED LED, LED display, circuit protection devices with voltage ≤1000V, relays with voltage > 60V, switching components such as transistors, semiconductors and thyristors with dissipated power <1W, and printed circuits with > four layers and ≤ four layers are subject to an additional 25% tax.