US trade stance to hit global value chain

Companies and experts warned that intensifying Sino-US trade disputes could lead to a breakdown of the global value chain, as the United States Trade Representative started a seven-day public hearing on the proposed additional tariffs on $300 billion worth of Chinese exports on Monday.

Last month the US government increased tariffs on $200 billion of Chinese exports to 25 percent and further ordered the USTR to prepare more tariffs on another $300 billion worth of Chinese goods, covering almost all exports from China. The hearing is being held from June 17 to 21, and then will run from June 24 to 25.

Last week, more than 600 US companies and trade associations including Walmart, Target and Costco sent a letter to US President Donald Trump, warning that tariffs on Chinese exports will have a longterm negative impact on US businesses.