The political winds seem to be blowing in favor of a Congressional vote on the U.S.-Mexico-Canada Free Trade Agreement (USMCA) yet this fall. But before they vote, some Members of Congress want to talk over a few issues with the Trump administration’s negotiators. One is intellectual property protections for the U.S. biopharmaceutical industry. As important as it is, the issue of data protection for biologic drugs is not well understood.
The next generation of smarter and more powerful machines will rely on even more sophisticated semiconductors to achieve new capabilities. Pressure is on to “win” in the global chip race, which is why efforts to protect innovations in chipmaking are front and center in the current trade war – for better and for worse.
As negotiations continue toward a trade agreement, President Trump and President Xi of China have imposed tariffs on each country’s products in an unprecedented trade war. If you’ve lost track of how we got here, here is a handy quick guide to recent events unfolding in the ongoing U.S.-China trade war.
As the U.S.-China trade war rages, two-way foreign direct investment (FDI) is plummeting. So far this year, combined two-way U.S. and Chinese FDI totals just $9.9 billion – its lowest six-month value in five years. At the same time, venture capital investment is becoming an increasingly bigger piece of the U.S.-China investment puzzle.
U.S. businesses are preparing for another possible wave of tariffs while seeking product exclusions from existing tariffs on goods from China. Find out how the Trump administration is responding to these product exclusion requests, and keep track of the “tranches” or waves of tariffs announced or implemented by the administration using our graphic.
Economists can’t tell you how tariffs impact your own business, your job or your shopping cart. Nonetheless, as tariffs are set to go higher, we look at how economists are dialing the tariffs into their forecasts about growth for the U.S. and global economy.
China is stockpiling its rare earths production. Does China think the United States is trying to contain China’s economic expansion? Threatening to withhold rare earths exports could be China’s way of digging into this trade war with the United States.
There are rough waters ahead for shippers dealing with the tariff uncertainties. The prospect of tariff hikes is incentivizing companies to lock in better shipping prices now. But many retailers are competing just to find space for their goods on an ocean carrier, and the shipment surge has resulted in massive congestion at ports and warehouses.
Just hours after signing the United States-Mexico-Canada Agreement in December last year, President Trump said, “Congress will have a choice of the USMCA or pre-NAFTA, which worked very well.” On the tariff side at least, while a no-USMCA scenario is bad, no NAFTA is most definitely worse.
Every policy realm has its jargon. Trade policy is no exception. The difference between a country’s weighted average bound tariff and its weighted average applied tariff is called “water in the tariff schedule”. It’s a topic of discussion in WTO negotiations over what the starting point for tariff cuts should be.