CCTV Transcripts

CCTV Script 02/09/19

— This is the script of CNBC's news report for China's CCTV on September 2, 2019, Monday.

This Monday is U.S. public holiday Labor day, usually this long weekend is a good chance to shopping, but affected by the trade war, consuming experts said the US consumers have to be aware of a hidden sales tax, which is disguised raising price.

Experts suggest looking for products that are marked down by at least 20% if consumers want to offset the 20% tariffs imposed.

From Sep 1, next rounds of Trump's tariffs on Chinese goods took effect, more products would be affected directly, for this part of influence from tariffs, US consumers are not going to feel it in a short term, but the next shopping festival, that is Black Friday in Nov, they will afford more from tariffs.

Especially more finished products would be impacted by this round of tariffs, clothes, shoes and electronics are more related to common consumers.

Because US government imposes tariffs on importers directly, so before consumers being affected, US companies will "suffer" from it first.

According to some data, US electronic companies have lost around $10b since July 2018.

How to deal with tariffs? This question makes many related US companies headache. Some of them send this burden to consumers for some products with high level of homogenization.

Columbia sportswear CEO told CNBC that they will just raise price.

But some big companies will pay for the tariffs by themselves; avoid raising price, in order to keep their market share. Take apple for example, it is at the front line of trade war though; we have never seen a growth in its price.

Apple actually paid about $0.5b tax. But not all companies are capable to do that, mid and small size companies suffered more than big companies did. Apart from these 2 approaches, applying for exemption can also avoid impact from tariffs, Apple tried, but rejected by Trump.

Of course, a more direct way to avoid affected by this round of tariffs is withdrawing from China, and that is what Trump wants to reach, however, this is also the most expensive and unrealistic way to being less affected , in terms of China's non-substitutability at many aspects. More important is if US companies move when trade dispute with China still unsolved, how would they do if US has another trade dispute with other countries? Anyway, US has trade friction not only with China now.