U.S. signals to scale back tariffs on China
- With the first batch of Trump-era 301 tariffs on Chinese goods expiring on July 6, the U.S. Trade Representative (USTR) is expected to kick off the review of these tariffs soon. In an interview with the Milken Institute Global on Monday, USTR Katherine Tai signaled that the U.S. could relieve the tariffs to fight inflation. However, Tai appeared to downplay the likelihood of a big tariff slash.
- In 2018, the then U.S. President Donald Trump started a trade war with China by using the Title III of the Trade Act of 1974 (§301-310, 19 U.S.C. §§2411-2420). The law, collectively known as “Section 301,” aims to sanction countries that hurt U.S. trade interests. The 301 sanctions automatically close four years after taking effect. However, companies can request a continuation of such policies in the last 60 days before the period ends, and the USTR should start a “review of necessity” to decide whether to extend the measures.
- The office of the USTR has so far imposed extra tariffs on four lists of goods imported from China:
- List 1 - $34 billion (Jul. 6, 2018 - Jul. 6, 2022)
- List 2 - $16 billion (Aug. 23, 2018 - Aug. 23, 2022)
- List 3 - $200 billion (Sept. 24, 2018 - Sept. 24, 2022)
- List 4 - $300 billion (Sept. 1, 2019 - Sept. 1, 2023)
India seizes $725 million asset from Xiaomi
- India’s financial investigation agency Enforcement Directorate (ED) has seized ₹55.5 billion (or US$725 million) of assets of China’s top tech company Xiaomi over "illegal remittances." The agency said Xiaomi India had transferred the same amount of foreign currency to “three foreign based entities…in the guise of royalty.” Xiaomi denied the accusation.
- The deadly border clash between India and China in 2020 triggered a wave of boycotts of Chinese companies and products. Since June 2020, India has banned more than 200 Chinese apps, including TikTok and WeChat.
May Day rallies turned violent in France, Germany, Turkey
- The demonstrators rallying on the May 1 International Labor Day clashed with police in France, Germany, and Turkey. Also over the weekend, Greeks and Sri Lankans took to the streets to protest against soaring prices.
Pelosi visits Ukraine
- U.S. House Speaker Nancy Pelosi traveled to Kyiv on Saturday and met with President Volodymyr Zelenskyy, becoming the highest-ranking U.S. official to visit Ukraine since the war began. The trip sent out a strong signal of support from the U.S. On Sunday, Pelosi told the press that America “stands with Ukraine until victory is won.”