China Tariff Update for SPESA Members
The following update was provided to SPESA members via email.
The United States and China have reached a tentative and partial trade deal and paused the tariff increase that was set to take effect today on imports on the Section 301 Tariff List 3. Instead of increasing to 30%, tariffs on List 3 imports will remain at the 25% rate implemented in May of this year.
President Trump announced the deal during a meeting with China’s Vice Premier Liu He on October 11, stating it could be 3-5 weeks before an official, written agreement is released. While we are always hesitant to get too excited, the rhetoric from the White House is that this is the deal that will “end the trade war.”
As of now, the tariff increase set for December 15 (List 4, which includes basically all remaining products) is still scheduled to go into effect. According to the United States Trade Representative, Ambassador Robert Lighthizer, “the President has not made a final decision on that, but there’s plenty of time to make that decision.”
The official remarks from the October 11 meeting are available here. We will keep you updated as more information is released.
Also, as trade and tariff issues continue to be a significant point of discussion, we will address them at our upcoming Executive Conference with some of the best experts in the industry.