BREAKING: Tentative US-China Trade Deal Could Suspend Oct. 15 Tariffs
Date: Friday, October 11, 2019
Source: Sourcing Journal
The deal is still tentative, and subject to President Trump’s approval.
Essentially, the deal would provide considerable relief on tariffs applied to Chinese imports. The U.S. would reportedly suspend the planned tariff hike set for Oct. 15, which calls for an increase on Tranche 3 imports from 25 percent to 30 percent, and could also include tariffs set to be implemented on Dec. 15 on the balance of Tranche 4 goods not already taxed.
The agreement is believed to lay the groundwork for follow-up talks to resolve the greater issues between the two countries, which concern accusations that the China has been guilty of stealing intellectual property assets from U.S. companies.
Jennifer Safavian, executive vice president of government affairs at the Retail Industry Leaders Association, said, “Suspending the Oct. 15 tariff increase is welcome news for retailers, consumers and the global economy. The administration knows that the trade war and specifically the harmful tariffs are weakening the U.S. economy, hurting manufacturers and causing consumers to pay more for everyday items like shoes, sweaters and sporting equipment.
“Relief from the anticipated tariff increase is appreciated,” Safavian continued, “but only a long-term agreement will alleviate the uncertainty inflicted by the trade war. We are encouraged by the reported productive tone of the U.S.-China talks and will continue to press the administration for a comprehensive trade deal that ends the tariffs on all product lines.”
News of a partial deal was first reported by Bloomberg.