Last week, US President Donald Trump said that an additional 10 percent tariff will be imposed on Chinese-origin goods effective September 1, 2019.
USD300 billion of tariffs will be applied to so-called ‘List 4’ items that have, to date, escaped additional duties. These comprise approximately 3,800 items and include textiles, apparel and footwear.
The proposed hike comes as trade talks between the USA and China stalled. Industry analysts expect China to retaliate in kind.
The Chinese Yuan, meanwhile, has slipped to its lowest level since 2008 and is currently trading at USD1:RMB7.08. The slump prompted the US Treasury to label China a currency manipulator. The actions of China’s central bank have been described as a way of boosting Chinese exports while offsetting the negative effects of the ongoing trade tensions; China’s GDP growth of 6.2 percent for the quarter ended June 2019 was the lowest reported for 27 years.
Germany, meanwhile, posted weak industrial output figures for June 2019. The country’s Statistics Office said industrial output fell by 1.5 percent month on month with the US-China trade dispute cited as a key reason for the decline. Both markets are key export destinations for German-made goods.
The September/October 2019 edition of the magazine will include a dedicated report on the USA's project logistics market and, according to those already interviewed by HLPFI, there is near-universal agreement that the complex geopolitical environment is negatively affecting the country's project logistics supply chain. If you would like to contribute in an editorial capacity, please get in touch with David Kershaw.