Trade War 101: Non Tariff Barriers

The WSJ reports that US-Chinese Spoiled Relations lead to U.S. Goods Stuck at China’s Ports as Trade Tensions Heat Up. Not only nvel oranges, lemons and cherries and Washington apples, have been sitting at Chinese docks longer than normal. China’s customs agency said Monday it would start strengthening quarantine inspections on U.S. apples and timber after claiming to have found pests in some recent shipments. Before last week, U.S. cherries could pass through such quarantine inspections in a matter of hours, and oranges and lemons would typically take a couple of days to clear the reviews. Now the process is, in some cases, taking five to seven days.

Even Ford cars may now need to be disassembled for Chinese customs officials as US cars are now subjected to unusually rigorous checks at the port. Chinese customs officials want to inspect individual components inside the vehicles’ emissions system, which basically requires the car to be disassembled…

The Chinese have a playbook for Non Tariff Barriers, the WSJ reports: “Last year, amid tensions about South Korea’s deployment of a U.S.-built missile-defense system, China stopped sending tour groups to the country and sales of Hyundai Motor Co. cars in China plummeted. China at one time imposed curbs on imports of Philippine bananas over rival territorial claims in the South China Sea.

In April, Beijing increased tariffs on fruit, including lemons and limes to 26% from 11% and 25% on cherries from 10%, along with a number of other U.S. imports. It was in retaliation against the Trump administration’s penalties that have hit Chinese steel and aluminum. Now we pile on NTBs.