U.S., China G-20 Agreement Postpones Planned January 1 Tariff Escalation
The pace of escalating trade tensions between the U.S. and China have slowed following a bilateral meeting last week at the G-20 Summit in Buenos Aires, Argentina, between President Trump and President Xi Jinping. The U.S. will push back plans by 90 days to raise tariffs from 10 percent to 25 percent on approximately $250 billion in Chinese imports, while the Chinese government agreed to buy a substantial amount of U.S. agricultural, energy and industrial products. The 25 percent tariff was expected to go into effect on January 1 on a large number of products. See the detailed list, organized by HTS (Harmonized Tariff Schedule) code, here.
The agreement gives the U.S. and China a window to come to an agreement over disputes regarding the trade imbalance between the two countries and the U.S. Trade Representative’s Section 301 into Beijing’s intellectual property practices and theft of trade of secrets. If no agreement is reached during the 90-day pause, the U.S.’ proposed 25-percent tariff on Chinese goods will go into effect.
Charles Boustany, former congressman and spokesman for Tariffs Hurt The Heartland—a nationwide campaign against tariffs supported by the coalitions Farmers For Free Trade and Americans For Free Trade, of which PPAI is a member—says, “Agreeing not to raise tariffs on American businesses, farmers and consumers is an encouraging first step. These tariffs are taxes that Americans pay, and avoiding a massive tax increase on January 1 is welcome news that must be followed up by rolling back the tariffs currently in place. Tonight’s announcement makes clear that the Administration has heard the stories of economic hardship from Americans who have been hurt by tariffs. Our campaign will continue to tell their stories as the Administration enters into this important negotiation period.”
Industry companies, still reeling over the impact the tariffs will cause on their businesses, are now rethinking how to best manage the delay. Read more from them in Thursday’s PPB Newslink.