Although the winter holiday season has not yet arrived, Christmas trees have once again become a focus, being involved in geopolitical struggles between China and the United States.
According to Nanhua Morning Post's report on July 11th, as the United States and China attempt to stabilize their relations through a newly proposed bilateral trade mechanism, the group that is most vocal about this issue is not the technology industry or manufacturers. Instead, it is American Christmas tree growers who are determined to maintain tariffs on Chinese-made artificial Christmas trees.
Dozens of growers from all over the United States have submitted opinions on the public comment platform of the U.S. Trade Representative Office (USTR), urging officials not to classify artificial Christmas trees as “non-sensitive” goods that can enjoy lower tariffs.
"Reducing the current extra tariff on Christmas trees grown in China will again expose thousands of family farms to competition from imported goods at a price below their cost, which has already eroded their market for twenty years."
This controversy stems from the proposed “Board of Trade,” which was one of the important outcomes of the meeting between Chinese and American leaders in May this year.
According to this proposal, the two countries will establish a joint mechanism to regulate bilateral ‘non-sensitive’ trade in goods worth $30 billion. These goods may enjoy reduced or even zero tariffs in the future.
To launch this program, the US Trade Representative's Office invites businesses, industry organizations, and consumers to submit public opinions.
As of Friday morning, the U.S. Trade Representative Office had received approximately 280 suggestions from companies in various industries, who hoped to have their goods such as clothing, kitchenware, furniture, toys, snacks, and other consumer goods subject to lower tariffs.
However, Christmas tree growers are particularly notable. About a quarter of the opinions come from them, requesting that tariffs on imported artificial Christmas trees from China continue to be maintained.
Powell warned that about 87% to 90% of the artificial Christmas trees imported by the United States come from China. This makes the United States “almost completely dependent on a single supplier from a hostile country” for a cultural significance consumer good.
The growers initiated this action, partly because during a hearing held by the U.S. Trade Representative Office in May of this year, a manufacturer and retailer of artificial Christmas trees provided testimony.
Large artificial Christmas tree importer Balsam Hill's executive and chief legal counsel, Nathaniel Roland, stated that artificial Christmas trees should meet the conditions for reduced tariffs, as they are not sensitive goods and have nothing to do with national security.
"When tariff policies are mislaid, who actually bears the costs?"
Historically, artificial Christmas trees have not been subject to tariffs, but last year they were included in the scope of comprehensive tariff increases. Importers say this has caused damage to their business.
The president of the American-Chinese Chamber of Commerce, based in Chicago, Siva Yam, believes that the proposed Trade Council is more likely to help American farmers enter the Chinese market by reducing tariffs. Therefore, it is somewhat ironic that Christmas tree growers are demanding higher tariffs on imported Chinese goods.
China emphasized that the two heads of state agreed to establish a Trade Council and an Investment Council, aiming to shift Sino-US economic and trade consultations from a ‘crisis-oriented’ approach to a ‘mechanized management’ approach. These new platforms serve as ‘boosters’ and ‘shock absorbers’ for Sino-US economic and trade cooperation.
