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China Tariffs Increase Suspended

On Friday, October 11, 2019, the United States Administration announced a Phase 1 interim deal with China. The Phase 1 deal with China will require China to purchase U.S. agricultural products and set a currency standard for the China renminbi. It will also strengthen protections of U.S. intellectual property rights and provide access to Chinese markets for U.S. financial services firms. The United States will suspend the increase in tariffs from 25% to 30% on $250 billion worth of Chinese imports which was scheduled to take effect on October 15, 2019.

These suspended tariff changes effect only the first three tariff lists as follows:

  • List 1 – $34 billion – will remain at 25%.
  • List 2 – $16 billion – will remain at 25%.
  • List 3 – $200 billion – will remain at 25%.

There was no mention of any changes to List 4B which is scheduled to take effect on December 15, 2019 with a 15% tariff.

The Phase 1 deal is expected to be written and signed soon. Following the completion of Phase 1, a Phase 2 comprehensive deal will be negotiated.

For more information, please contact your local Noatum Logistics representative.