After months of negotiation, the US and China have announced that they have come to an agreement on trade. The US will cut the current taxes on $120 billion of Chinese goods from 15% down to 7.5% and has decided to not move forward with adding tariffs to the rest of the $160 billion Chinese goods. This will take effect on December 15, 2019. A 25% tariff rate will continue to stay in place on approximately $250 billion worth of US goods. In return, China has agreed to increase its purchases of US goods and services along with around $40-50 billion in agriculture products.
After meeting with Vice Premier Liu He of the People’s Republic of China, President Trump announced in a news release on October 11, 2019 that the duty increase from 25% to 30% on List 1, 2, and 3 products would be suspended. A final decision will be made later regarding the additional duties scheduled to go into effect December 15, 2019 for List 4B commodities.
Information regarding the phase one deal can be found in the White House news release here.
Following a World Trade Organization decision paving the way, the U.S. Trade Representative (“USTR”) has published a list of products form E.U. origin which will be subject to additional duty rates of 10% or 25% ad valorem, effective October 18, 2019.
We expect that a FEDERAL REGISTER notice will be published with the details including confirming the definition of the October 18 effective date; effective dates are commonly based on the date of entry.
As with other tariffs, close coordination with your carrier and EXPRESS representative is needed to avoid duties assessed to shipments arriving before the effective date. EXPRESS Trade Capital, Inc. is available to answer your questions, help assess impact to your business and discuss mitigation strategies. Reach out to us at firstname.lastname@example.org
After meeting with President Xi over the weekend, President Trump announced decisions regarding the bilateral trade dispute. The President announced that while current tariffs will remain in place, he will not move forward with additional tariffs as negotiations continue. Therefore, there are no immediate plans to implement Tranche or List 4 trade-remedy tariffs.
The United States Trade Representative recently concluded seven days of hearings on the proposed List 4. The testimony and comments solicited from the public as part of the List 4 review may influence the products to be included and tariff rate if and when any additional trade-remedy actions are taken. But for now, any action on List 4 is on hold.
If you import from China, Express Trade Capital is here to assist with trade strategies to minimize the impact, apply for exemptions, and process refund claims where exemptions have been granted. Click here to contact Express Trade Capital for expertise and support. We are here to help.
Late Friday night the President announced successful negotiations with Mexico. With a signed agreement addressing illegal immigration, the President has suspended indefinitely the planned tariffs against Mexico.
The 5% tariff on goods from Mexico will not go into effect on June 10, 2019.
On May 31, 2019,
President Trump issued a proclamation announcing the termination of India as a beneficiary
developing country. The decision comes as a result of the fact that,
according to the President, India has not assured the United States
that it will provide equitable and reasonable access to its markets as
well as refrain from engaging in unreasonable export practices.
things, this means that US imports from India entered for consumption or
withdrawn from warehouse for consumption, will no longer be eligible for
preferential duty treatment under the Generalized
System of Preferences as of June 5.
Contact Us to learn how ETC can help you manage your supply chain and any unforeseen costs.
President Trump has announced plans to impose 5 percent tariffs on all goods imported from Mexico, rising to as high as 25 percent until – according to the White House – the Mexican government stems the flow of migrants. While most specifics are not yet known – conceptually, tariffs will become effective June 10 and gradually increase by 5 percent each month until they reach 25 percent in October.
What we still don’t know:
If the action is to be administered by the date
If all exports from Mexico to the US are covered
including non-Mexican origin goods exported from Mexico and the US goods returned
Whether NAFTA benefits for duty and merchandise
processing fee will be allowed
Whether these tariffs are eligible for drawback,
For US importers, this has a few implications. First, all
goods brought in from Turkey are no longer eligible for preferential duties
under the Generalized System of Preferences, or GSP. Crystalline silicon photovoltaic
(CSVP) cells from Turkey are now subject to safeguards outlined in Proclamation
9693. Additionally, large residential washers coming from Turkey will
be subject to stipulations indicated in Proclamation 9694.
Per last week’s announcement, the White House has raised existing tariffs on $200B worth of Chinese imports from 10% to 25% and is now threatening new tariffs of up to 25% on an additional $300B worth of Chinese imports as part of its ongoing trade war with China. The latest list targets a wide variety of goods, including apparel, accessories, food and beverage products, and livestock.
President Trump seems
optimistic about reaching an agreement with Chinese President Xi Jinping and downplays the conflict
as a “little squabble…because we’ve been treated very unfairly for many,
many decades.” The proposed changes will likely take effect in late
June or July unless a trade agreement can be reached before
should begin preparing to either pay the newly raised tariffs or
acquire their goods elsewhere.
Talk to our team
learn how ETC can help you plan for the increased costs your business will incur due to the new tariffs and how to protect your
business during these uncertain times.
Business owners who rely on China’s abundant manufacturing facilities and low production costs may be in for a massive challenge. The ongoing trade war the US government has waged with China may not end by March, meaning more potential tariffs that could disrupt the global economy.
ETC’s own Mark Bienstock and other industry experts spoke to California Apparel News this week about strategies to protect yourself and your business from the effects of this ongoing international conflict.