Taking the trade war with China to the next level, President Trump directed the United States Trade Representative Sept. 17 to impose tariffs on roughly $200 billion worth of Chinese products, including hardwood flooring. In response, the next day China announced it will impose tariffs on $60 billion worth of U.S. imports.
The new U.S. tariffs, first proposed by the Trump administration July 10, are set to go into effect Sept. 24, starting at 10 percent. The level of the tariffs will increase to 25 percent beginning Jan. 1.
China, which has long threatened retaliation to more tariffs by the U.S., has also included hardwood products in its new list of 10 percent duties, according to the Hardwood Federation.
Trump said in his Sept. 17 statement that should China impose retaliatory tariffs to the U.S.’s latest punch, the he would unleash “phase three,” which includes another slew of tariffs on $267 billion of additional imports.
Trump cited China’s “unfair policies and practices” relating to U.S. technology and intellectual property as the reason for the latest tariffs, which follow duties on $50 billion worth of Chinese products imposed by the U.S. June 15.
“For months, we have urged China to change these unfair practices, and give fair and reciprocal treatment to American companies,” Trump stated. “But, so far, China has been unwilling to change its practices.”
The USTR held public hearings in August regarding the tariffs, during which several hardwood flooring manufacturers spoke of the devastating impact the duties would have on the industry. Following the hearings, the USTR deleted 297 Chinese products from the proposed tariff list, but wood flooring, including cork and bamboo, remain among the final list of products slated for tariffs.
The National Association of Home Builders said the latest tariffs could have “major ramifications” for the housing industry.
“With America facing a housing affordability crisis, it is counterproductive to enact policies that will needlessly drive up the cost of housing,” NAHB Chairman Randy Noel said in a statement. “We respectfully urge the administration to change course and work to resolve these trade disputes in a manner that won’t harm American businesses and consumers.”
Trump has shown no signs of pulling back, however, and stated that the ball is essentially in China’s court.
“China has had many opportunities to fully address our concerns,” Trump said. “Once again, I urge China’s leaders to take swift action to end their country’s unfair trade practices. Hopefully, this trade situation will be resolved, in the end, by myself and President Xi of China, for whom I have great respect and affection.”
The full list of tariffs can be viewed here.
