The Office of the United States Trade Representative (USTR) has announced that U.S. and China have reached an initial or ‘Phase One’ agreement on trade. Many agreement details, including an implementation timeline, are yet to be confirmed. The Phase One agreement will also require formal signing by both parties.
Subject to confirmation, U.S. government and media outlets have reported the following details regarding the Phase One agreement:
- U.S. Section 301 tariffs scheduled to be effective December 15th, 2019 will be cancelled at this time;
- China is considering cancelling retaliatory tariffs against the U.S. scheduled for December 15, 2019;
- U.S. Section 301 tariffs on Chinese products currently at 25% will remain unchanged;
- U.S. Section 301 tariffs on Chinese products at 15% will be reduced to 7.5%;
- China will significantly increase its purchase of U.S. agricultural, industrial and energy products.
The U.S. and China will begin immediate negotiations on outstanding trade issues not covered in this initial agreement.
U.S. and Chinese importers are reminded that it will take time for any reduction in tariffs to be formally enacted and modified. Imports from China to the U.S. will continue to attract Section 301 tariffs (duties), as applicable, prior to these changes being communicated and formally enacted by both the USTR and U.S. Customs & Border Protection (CBP).
Delmar International will continue to monitor U.S. Section 301 trade developments and provide updated information as it is made available.
Please contact your local Delmar Representative or email our U.S. Customs Advisory Services Group for additional information and assistance.