The US and China have reached phase one of a trade agreement, which has prompted the White House to call off the Section 301 tariff increases slated for December 15th. The planned increase would’ve impacted consumer goods including toys, clothing, and cell phones. A tweet from the President today announced that the tariff increase would not take place, and other Section 301 tariffs would be lowered. The 15% tariffs that took effect on September 1st will be reduced to 7.5%; however, the 25% tariffs on $250 billion of Chinese imports will remain. A time frame to reduce the September 1st tariffs to 7.5% has not yet been announced.
“We have agreed to a very large Phase One Deal with China. They have agreed to many structural changes and massive purchases of Agricultural Product, Energy, and Manufactured Goods, plus much more. The 25% Tariffs will remain as is, with 7.5% put on much of the remainder…” shared the President. Additionally, the agreement includes a commitment for China to make substantial additional purchases of US goods and services in the future and includes a dispute resolution system ensuring “prompt and effective implementation and enforcement.”
The agreement has not yet been inked, but President Trump indicated phase two of the talks would begin immediately. The US Trade Representative’s announcement provides additional details, and Deringer’s compliance Department can be reached for specific entry information.