According to the U.S. government's past experience of tariff exemptions to China, from the enterprise application to the final government confirmation, the time interval is generally 2 to 3 months, and this time lasted 5 and a half months, or with the holidays, the Russian-Ukrainian conflict game. Overall, the pace of tariff exemptions is slow and limited in scope.
What is the size of the 352 exempted products? According to U.S. Customs data for 2021, the exempted products involve about $61.9 billion, accounting for about 21 percent of the total amount of tariffs imposed ($287.8 billion in 2021) and about 12 percent of China's total exports to the U.S. ($536.1 billion in 2021).
What products are involved in the 352 exemptions? They mainly include electrical equipment such as motors and pumps, mechanical equipment such as filters and water purifiers, consumer goods such as furniture, bicycles, and textiles, some plastic products, some automobile parts, base metal products such as steel, medical equipment such as X-ray hardware, etc., and certain chemicals. Measured by the 2-digit HS code, the exemption amount of Chapter 85 motors, electrical and audio equipment, Chapter 84 boilers, mechanical appliances and parts, Chapter 39 plastics and products thereof, and Chapter 94 furniture, lamps and bedding accounted for about 75% of the total exemption amount. Exemption ratio, some textile fibers, plastic products, leather products, furniture and lamps, detergents and lubricants, such as the exemption amount accounted for more than 15% of China's exports to the United States.
The status of U.S. tariffs on China: about 54% of China's exports to the U.S. in 2021 were subject to tariffs. By product, the proportion of tariffs imposed on electrical and electronic equipment, machinery and equipment, shoes, hats, umbrellas, and minerals is relatively low, while almost all of the products such as food and beverages, artwork, and leather are subject to tariffs.
Implementation of the first phase of the U.S.-China economic and trade agreement: By the end of 2021, China had completed only 57 percent of the product purchases in the first phase of the U.S.-China economic and trade agreement. In terms of products, 83 percent of agricultural products, 59 percent of manufactured products, 52 percent of services and 37 percent of energy products have been completed. Currently, the U.S. and China economic and trade teams are still in contact with the negotiations, but the progress is slow.