<b>Downstream of the impact of Sino-US trade war on TDI: Furniture</b>

The trade war between China and the United States continues to escalate, and Chinese furniture products are also on the list of tariffs imposed by China and the United States. Below, the editor of Tiantian Chemical Network briefly analyzes the impact of taxation on China's furniture industry.

China imposes 10% tariff on American-origin furniture

In the "Announcement of the Customs Tariff Commission of the State Council on Imposing Additional Tariffs on Imported Products Originating in the United States of About 60 Billion Dollars" issued on September 18, the Customs Tariff Commission of the State Council announced that from 12:01 on September 24, 2018 From now on, 10% tariffs will be imposed on 2493 tax items listed in Annex 1 and 1078 tax items listed in Annex 2, and 5% tariffs will be imposed on 974 tax items listed in Annex 3 and 662 tax items listed in Annex 4. % tariff. Furniture is also among them.

From January to December 2017, there were 6,000 enterprises above designated size in China's furniture industry, and the accumulated main business income was 905.597 billion yuan, a year-on-year increase of 10.11%; the accumulated total profit was 56.515 billion yuan, a year-on-year increase of 9.31%; The output was 807.0347 million pieces, a year-on-year increase of 3.64%. The accumulative export of the whole furniture industry was US$51.424 billion, a year-on-year increase of 4.54%; the accumulative import was US$3.052 billion, a year-on-year increase of 15.65%. The ratio is 0.34%, which is very small. Therefore, China's 10% tariff on American-origin furniture has limited impact on the domestic furniture industry.

The United States imposes tariffs on Chinese-origin furniture (from September 24, 2018, the tariff rate is 10%, and from January 1, 2019, the tariff rate is increased to 25% )

The United States has imposed an additional 10% tariff on US$200 billion of Chinese goods since September 24, and will increase the tariff to 25% by the end of 2018. In the list of 200 billion goods subject to additional tariffs, furniture is also among them.

In recent years, the international dominance of Chinese furniture is constantly increasing. In 2017, the total global furniture production was 466 billion US dollars, and the global furniture exports were 146 billion US dollars, accounting for more than 31% of the total production. Among them, the cumulative export of China's furniture industry was 51.424 billion US dollars, a year-on-year increase of 4.54%. From the perspective of furniture export varieties, wooden furniture and metal furniture are still the main body of my country's furniture exports. The varieties mainly include wooden furniture, metal furniture, frame furniture, upholstered furniture, plastic furniture, glass furniture, bamboo and rattan furniture and furniture parts. kind. The main export markets of Chinese furniture are developed countries such as the United States, Japan, and the European Union. As China is the largest exporter of furniture, if the United States imposes tariffs on Chinese-origin furniture (the tariff rate will be 10% from September 24, 2018, and the tariff rate will be increased to 25% from January 1, 2019 ), it will have a certain impact on the domestic furniture export volume, which is reflected in the polyurethane industry, that is, it will have a certain impact on the domestic upholstered furniture export volume, which will further affect the domestic Consumption of TDI.

East China and South China are the main downstream areas of domestic upholstered furniture. According to the statistics of the output distribution of upholstered furniture in the past five years by Tiantian Chemical Network, the output ratio of upholstered furniture in various regions in China: Zhejiang Province in East China accounts for about 32-35% of the national output, and Shanghai accounts for about 5-6% of the national output. Guangdong Province in southern China accounts for about 25-30% of the country's output, and Fujian Province accounts for about 8%. According to feedback from some domestic upholstered furniture manufacturers, some claim that Sino-US trade has little impact on them because their share of exports to the US is very small, while some claim that Sino-US trade has a certain impact on their trade because they export to the US The amount has a certain share.

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