Goldman Sachs warned that export data indicates increased rates of transshipments from China to the U.S. through third-party countries-a similar pattern observed during the 2018 trade war. The tariff evasion taking place today could impact more than $200 billion in U.S. imports, costing the U.S. $40 billion in tariff revenue if efforts to curb the sidestepping aren't mitigated, bank analysts Joseph Briggs and Megan Peters said in a report.
US Treasury Secretary Scott Bessent called the announcement from China's State Administration for Market Regulation (SAMR) poor timing, a move analysts said gave China leverage in the trade talks. The two countries have traded barbs over the past six months since US President Donald Trump hit China with massive tariffs, before lowering them to 30 percent, and threatened to shut down popular social media app TikTok.
The United States and China have reached a framework agreement to transfer TikTok's ownership to US control. Officials from both countries made the announcement on Monday. list of 4 itemsend of list The short-form video app was set to be banned in the US by Wednesday if its owner ByteDance did not agree to sell the company to a US-based operation or if the US did not extend a pause of the ban, which the White House has already done three times, most recently in June.
According Bessent, the proposed deal is " between two private parties," with the key commercial terms already agreed upon, ahead of this week's TikTok sell-off deadline in the U.S. The big Trade Meeting in Europe between The United States of America, and China, has gone VERY WELL! A deal was also reached on a 'certain' company that young people in our Country very much wanted to save. They will be very happy! I will be speaking to President Xi on Friday."
Nvidia had failed to fully comply with provisions outlined when it acquired Mellanox Technologies, an Israeli-US supplier of networking products, China's State Administration for Market Regulation (SAMR) said on Monday. Beijing conditionally approved the US chipmaker's acquisition of Mellanox in 2020. Monday's statement came as US and Chinese officials prepared for more talks in Madrid over trade, with a tariff truce between the world's two largest economies set to expire in November.
According to the Consumer Technology Association's most recent estimates released Tuesday, Americans risk paying much higher prices for any Chinese imports that are not exempted from those 145 percent tariffs.
