China Tariff Increase to be Postponed Again
President Trump said Feb. 24 that he will postpone the scheduled March 2 increase in tariffs on $200 billion worth of imports from China in light of what he called “substantial progress … on important structural issues” in bilateral trade talks. Once this change is formalized, the Section 301 additional tariff on the so-called List 3 products will remain at ten percent for the foreseeable future, as no other deadline for increasing the tariff to 25 percent has yet been announced.
Press sources report that during talks in Washington last week the two sides began outlining the commitments to be included in a final agreement on issues such as forced technology transfer, intellectual property rights, currency, and agriculture. Trump said that if the two sides continue making progress he could meet with Chinese President Xi Jinping in March to resolve remaining issues.
In the meantime, the Office of the U.S. Trade Representative has been directed to report to Congress by March 17 on the establishment of a process for requesting exclusions from the existing ten percent tariff on these goods. Click here to read more about this issue and what your company should do in response.
For more information on the U.S.-China negotiations, please contact Nicole Bivens Collinson at (202) 730-4956.