The Office of the United States Trade Representative finally released the list of products regarding the Section 301 tariffs against China. Market reactions are so far very muted. Nikkei opened with slight gain following 1.65% rebound in DOW overnight but gyrated lower. It’s currently down around -0.1%. Hong Kong HSI is trading flat. China SSE is trading up 0.6%.
In the currency markets, NZDUSD is trading as the biggest mover for the day so far an is up 32 pips, NZDH CHF follows and is up 26 pips. EURNZD is down -58 pts at the time of writing.
The Section 301 action will impose 25% tariffs on approximately USD 50b of Chinese imports to the USÂ “in response to China’s policies that coerce American companies into transferring their technology and intellectual property to domestic Chinese enterprises.” And the Trade Res presentative claimed in the statement that these policies “bolster China’s stated intention of seizing economic leadership in advanced technology” in its “Made in China 2025” plan.
The proposed list of products covers around 1300 tariff lines, focusing on technological and industrial products, like televisions, medical devices, batteries, aircraft parts etc. The list will be finalized after public comment, including a hearing on May 15 in Washington. And companies will have until May 22 to file final objections.
Full release from US Trade Representative
And the list of products could be find here on page 14.
