Russia Hits China with Tariffs

Russia Hits China  with Tariffs

Russia has imposed a new tariff on a category of imports from China, an ally that has been a crucial  savior for Moscow since President Vladimir  Putin's 2022 invasion of  Ukraine.
Customs officials in Vladivostok recently reclassified sliding rail parts used in Chinese furniture,  placing them alongside furniture  bearing parts, meaning they are now subject to a  55.65% customs duty, the Association of Furniture and  Carpentry Companies of Russia  said in a  Nov. 28  press release.

The association warned of  "serious consequences," saying  that "such a  sharp increase in  tariffs could lead to the bankruptcy of many importers of furniture components and an inevitable  increase in the price of domestic furniture by at least  15%," its  website said.
The Far Eastern port city handles about  90% of shipments of Chinese furniture  hardware to Russia. Industry insiders  are wondering why China,  Russia's "hostage-free" partner,  is imposing tougher tariffs than European  suppliers. Russian train near Manzhouli, China
A file photo of a Russian train loaded with oil, timber and other goods entering China near Manzhouli.  Players in the Russian furniture industry are  angered by a reclassification of Chinese furniture fittings that has made them... More Getty Images
"The annual  import volume of furniture fittings is estimated at $1.3 billion, and it is  quite normal that  currently, customs duties on imported fittings  are only 0  percent - this provides  significant support to the industry," Alexander Shestakov, who  is the association's president, told  Forbes.
Shestakov stressed that similar fittings imported from Europe are subject to  customs duties of no  more than 10 percent. He  then emphasized how  dependent Russia is on Chinese imports and said  that these parts  are not produced  domestically. According to Vadim Vildanov,  CEO of Boyard, a Russian  furniture manufacturer, the move  puts pressure on Chinese suppliers and  hurts Russian manufacturers.  "This goes against the interests of domestic furniture  production, because it is Chinese  hardware stores that now cover the needs of the Russian  market," he told the news  agency.
The move has sparked  a sense of betrayal among some Chinese commentators.  "If such actions had  been taken by the United States,  positive energy experts would have long condemned it as  hegemonic behavior doomed  to failure. However, in the face of  Russia's ruthless measures, they remain silent, spineless  like a jellyfish," wrote a columnist under the pseudonym Du Juan for  the Chinese website NetEase  News. Trade between Russia and China has surged since the invasion of  Ukraine in February 2022, helping to  prop up Russia's  war-torn economy under Western  sanctions.

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Bilateral trade  hit a record $240 billion in 2023,  boosted by Russian oil exports and Chinese sales of electronics, vehicles and  machinery, a $50 billion  increase from the previous record set in  2022.
This year, trade flows  have faced more headwinds amid  increased US secondary sanctions on goods  seen as supporting Russia's military operations. Chinese exports to Russia  fell in March for the first time since March  2022. However, according to customs data, Chinese exports to its neighbor  increased in October by almost  27% compared to a year  earlier.