CLIA appeal prevents US-China trade war from becoming worse
25/09/2018
Luggage, bags, gloves, belts, wallets and other products containing leather now have a tariff of 10% when shipping from China to the US. However, this figure will rise to 25% on January 1.
Products exported from the US to China are also caught up in the trade-war; most US hides and wet blue became subject to 5% tariffs on September 24.
In comments to leatherbiz the day after the 5% tariffs came into force, honorary president of the China Leather Industry Association, Su Chaoying, said that the Chinese government originally intended to raise the tariffs on cattle hides to 25% at the start of the new year, in retaliation for the measures the US has taken. But he said the government had listened to the pleas of the association and will keep the tariff on cattle hides at 5%.
“We succeeded in convincing the government that increasing tariffs on imported hides would not be a good idea,” Mr Su said, which is good news. “We import a lot of hides from the US; 47% of our total hide imports come from there. We are relieved that the government listened.”
He went on to say that the CLIA had quizzed some Chinese automotive tanners recently about the possibility of using Brazilian hides instead of US ones to make their leather. “The tanners made it very clear they want to stick with US material,” Mr Su said, “and because hide prices have come down so far, the tanners feel that a 5% tariff won’t make the material unaffordable. Tariffs at 25% would have been a different matter.”
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