By admin       2018-07-12

On July 10, Office of the United States Trade Representative announced that US will take further action in the form of an additional 10 percent ad valorem duty on products of China with annual trade value of approximately $200 billion, and published target product list covers 195 pages. One senior government officials said the tariff will not take effect immediately, but will be reviewed for two months at the August 20-23 hearing. Looking from the published list, polyester filament yarn, polyester staple fibers, and downstream textiles in the polyester industry is involved, and apparels are not covered.According to Customs statistics, China exported 133kt of virgin polyester filament yarn to US in 2017, and export of polyester staple fiber totaled 167kt, including 38kt of virgin PSF. Export of virgin polyester filament yarn and polyester staple fiber approached 171kt totally, sharing 0.4% of polyester production in 2017 in China. Export of textiles and apparel amounted to $268.6 billion in China in 2017, and export of textiles to US totaled $12.4 billion, occupying 4.6% of the textiles and apparel export. The implementation of extra 10 percent tariff is expected to drag down export of polyester fiber and downstream textiles, bearish for downstream demand in polyester industry, while the influence is anticipated to be limited in view of the demand ratio. Whether US will slap extra tariff on Chinese apparel in the later period or not arouses much concern. It is known that export of apparel to US totaled 33 billion Yuan, sharing around 12.3% of total textiles and apparel export in China. If the tariff on apparel is imposed, the effect to demand for polyester industry is supposed to enlarge apparently. However, the program has not yet taken effect, and whether there is a long-term impact and the proportion of the influence need further observation.

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