The planned increase in tariffs on Chinese imports this week has been shelved in an initial agreement reached by the U.S. and China. The Administration said it would forego the tariff hike from 25% to 30% scheduled to go into effect today (October 15) on $250 billion worth of annual imports. In exchange, the Chinese would increase purchases of U.S. farm products.
With many details yet to be worked out, it is unclear what further effects the initial agreement will produce, including the fate of additional U.S. tariff increases scheduled to go into effect in December on electronics, apparel, and other imported consumer goods. While China’s exports to the U.S. have been slumping — by more than one-fifth in September vs. one year ago, some observers saw the results of last Friday’s talks as potentially in Beijing’s favor, as China prefers to slow down negotiations. Still, tensions were seen to be reduced between the two countries, which had been rising since talks broke down in the Spring.
What importers should know:
The situation remains very fluid. We are advising clients to do the following:
- Know whether your imports are affected and decide what you’re going to do about it.
- If you have a question about whether your products are affected by these or other tariffs, we may be able to help. We can tell you what impact the tariffs will have on your shipments, and help you file a claim for an exemption.
- Consider sourcing options in other countries besides China.
If you have questions regarding your shipments, please contact: Bill Skinner.