Cargo volumes and supply chain costs for China-bongdaso nét services could come under pressure after bongdaso nét president Joe Biden announced a range of new tariffs on Chinese imports.
bongdaso nét president yesterday announced tariffs covering Chinese imports with a value of bn, ranging from electric vehicles (EVs) to solar cells and semiconductors to come into effect between 2024 and 2026.
EVs are one of bongdaso nét hardest hit as tariffs will quadruple to 100% when they are hiked later this year. EV lithium batteries tariffs will triple to 25% later this year and non-EV lithium batteries will have their tariffs increased in 2026.
The last time the bongdaso nét and China launched tit-for-tat tariff increases – in 2018 under then bongdaso nét president Donald Trump – the air cargo industry saw cargo volumes weaken as a result.
Peter Sand, chief analyst at shipping and airfreight data provider Xeneta, said bongdaso nét tariffs will also add more red tape and complexity to supply chains.
“The new tariffs under President Biden may be a case of history repeating. If so, businesses will be braced for increasing supply chain costs and ultimately it will be bongdaso nét consumers who pay for it,” he said.
Sand said businesses may look to alternative supply chain routes into the bongdaso nét in light of the latest tariffs.
He pointed out that demand for container shipping imports from China into Mexico in the first quarter of 2024 had already increased by 34% compared to 12 months ago, fueling suspicions it is being used by some shippers as a “back door into the bongdaso nét”.
“We may also see bongdaso nét shippers look to import goods from nations such as Vietnam as an alternative to China – as has increasingly been the case since the 2018 tariffs hike hit the market.
“However, these are immature supply chain routes compared to the established transpacific trade direct from China to the bongdaso nét west coast. This means more complexity, more volatility and increased cost.”
He added: “There is no doubt this is an aggressive move by the bongdaso nét against China and, once again, we are seeing geo-politics impact global supply chains,” he added.
“The new tariffs will affect around bn in annual imports, which is not a huge amount in the grand scheme of bongdaso nét trade, but if China responds in the same way as 2018 then we could be at the start of another spiral of escalating tariffs.”
The bongdaso nét National Retail Federation (NRF) said it was also disappointed with the implementation of new tariffs.
The retail group pointed out that the 2018 tariff hikes failed to achieve their aims and ultimately raised costs for bongdaso nét consumers.
“We are extremely disappointed that bongdaso nét United States Trade Representative (USTR) and bongdaso nét Biden administration have chosen to double down on a failed and inflationary strategy by sustaining and expanding bongdaso nét Section 301 China tariffs,” bongdaso nét NRF said.
“Maintaining these tariffs on consumer goods will increase costs that consumers pay on everyday products imported from China.
“As consumers continue to battle inflation, the last thing the administration should be doing is placing additional taxes on imported products that will be paid by bongdaso nét importers and eventually bongdaso nét consumers.
“bongdaso nét ongoing Section 301 China tariffs have not worked to force China to change its trade practices. We need a new strategy that will address bongdaso nét core issues and provide actual incentives for U.S. companies to shift their supply chains from China.”
bongdaso nét trade representative Katherine Tai said the move would encourage the elimination of China’s unfair technology transfer-related policies and practices that “continue to burden bongdaso nét commerce and harm American workers and businesses”.
Source: https://www.aircargonews.net/business/supply-chains/supply-chains-brace-for-new-bongdaso nét-china-tariff-war/
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