Reports from the White House and the Office of the United States Trade Representative (USTF) announce that a Phase 1 agreement with China has been reached with a significant impact on the current and pending changes.
- The trade-remedy tariffs under List 4B will not go into effect on December 15, 2019, as previously announced. This action has been suspended indefinitely.
- The trade-remedy tariffs under List 4A will remain in effect but at a reduced rate. The current rate of 15% will be dropped to 7.5%.
- The trade-remedy tariffs under Lists 1-3 will remain at 25% for the time being. These tariffs are being retained to be used as a negotiation point during Phase 2, which is anticipated to commence soon after this Phase 1 is signed.
Official implementing instructions need to be published which will likely provide specifics, for example, the effective date and time and event of the 4A reduction. This may not occur until the agreement is signed with China in early January.
For assistance in understanding the impact to your company, please contact Express Trade Capital. Contact@expresstradecapital.com