Made in America Tech Products Get Export Push on China US Agreement

'Made in America' Tech Products Get Export Push on China, US Agreement

Nov. 11, 2014
“A successful ITA expansion would allow substantial expansion of 'Made in America' ITA exports to growing markets without the imposition of burdensome tariffs, and support tens of thousands of well-paying U.S. manufacturing and technology jobs,” the White House said.  

China and the U.S. reached an understanding on a bilateral agreement on expanding the scope of goods covered by the Information Technology Agreement (ITA), the White House announced November 10.

The agreement paves the way for “the resumption and swift conclusion of the first major tariff-cutting deal at the World Trade Organization (WTO) in 17 years, and promises a major boost to U.S. technology exports and the jobs that support them,” the White House said.

“A successful ITA expansion would allow substantial expansion of "Made in America" ITA exports to growing markets without the imposition of burdensome tariffs, and support tens of thousands of well-paying U.S. manufacturing and technology jobs.”

Under the agreement more than 200 tariff lines will be reduced to zero under an expanded ITA. Medical equipment, GPS devices, video game consoles, computer software and next generation semiconductors are among the high-tech products that will see tariff elimination.

"The ITA has played a central role in helping the U.S. semiconductor industry drive innovation, create jobs, lower consumer prices and connect communities throughout the world," said Brian Toohey, president and CEO, Semiconductor Industry Association.

"Today's agreement between the U.S. and China to expand the ITA is a hard-fought victory for the U.S. semiconductor industry and a big win for the U.S. economy and consumers around the world," Toohey added. "We look forward to all ITA countries finalizing a deal as soon as possible."

A sample of some of the impacted products and the size of the tariff reduction they would benefit from, include:

  • Next generation semiconductors -- Tariffs up to 25% reduced to zero.
  • Magnetic Resonance Imaging (MRI) machines -- Tariffs up to 8% reduced to zero.
  • Computed Tomography (CT) scanners -- Tariffs up to 8% reduced to zero.
  • Global Positioning System (GPS) devices -- Tariffs up to 8% reduced to zero.
  • Printed matter/cards to download software and games -- Tariffs up to 10% reduced to zero.
  • Printer ink cartridges -- Tariffs up to 25% reduced to zero.
  • Static converters and inductors -- Tariffs up to 10% reduced to zero.
  • Loudspeakers -- Tariffs up to 30% reduced to zero.
  • Software media, such as solid state drives -- Tariffs up to 30% reduced to zero.
  • Video game consoles -- Tariffs up to 30% reduced to zero.
  • An expanded ITA would also eliminate import duties on a range of additional technology products including high-tech medical devices, video cameras, and an array of high-tech ICT testing instruments.

The White House cites industry studies which found that a successful expansion of the ITA agreement would eliminate tariffs on roughly $1 trillion in annual global sales of information and communications technology (ICT) products and increase annual global GDP by an estimated $190 billion.

There will also be an effect on jobs, according to the White House. “Because the U.S. is a global leader in high-tech manufacturing and production, industry also estimates that an expanded ITA will support up to 60,000 additional U.S. jobs. In addition, an agreement will lower costs for downstream manufacturing and services industries that rely on ICT parts and components as inputs, increasing their competitiveness.

About the Author

Adrienne Selko | Senior Editor

Focus: Workforce, Talent 

Follow Me on Twitter: @ASelkoIW

Bio: Adrienne Selko has written about many topics over the 17 years she has been with the publication and currently focuses on workforce development strategies. Previously Adrienne was in corporate communications at a medical manufacturing company as well as a large regional bank. She is the author of Do I Have to Wear Garlic Around My Neck? which made the Cleveland Plain Dealer's best sellers list. She is also a senior editor at Material Handling & Logistics and EHS Today

Editorial mission statement: Manufacturing is the enviable position of creating products, processes and policies that solve the world’s problems. When the industry stepped up to manufacture what was necessary to combat the pandemic, it revealed its true nature. My goal is to showcase the sector’s ability to address a broad range of workforce issues including technology, training, diversity & inclusion, with a goal of enticing future generations to join this amazing sector.

Why I find manufacturing interesting: On my first day working for a company that made medical equipment such as MRIs, I toured the plant floor. On every wall was a photo of a person, mostly children. I asked my supervisor why this was the case and he said that the work we do at this company has saved these people’s lives. “We never forget how important our work is and everyone’s contribution to that.” From that moment on I was hooked on manufacturing.

I have talked with many people in this field who have transformed their own career development to assist others. For example, companies are hiring those with disabilities, those previously incarcerated and other talent pools that have been underutilized. I have talked with leaders who have brought out the best in their workforce, as well as employees doing their best work while doing good for the world. 

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