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U.S.A. and China Agree to Halt in Tariff Escalation and Discuss 90 Days of Negotiations

U.S.A. and China Agree to Halt in Tariff Escalation and Discuss 90 Days of Negotiations

In a historic meeting between U.S. President Donald Trump and China’s President Xi Jinping and their staffs, the two leaders agreed to a “cease fire” in the trade war that has been escalating and causing major trade and supply chain disruptions for most of 2018. While current tariffs and barriers will remain, a continuing escalation of new deeper tariffs from both countries will not take place as of January 1, 2019.

A 90 day negotiation period will be undertaken to see if a long term trade deal between the world’s 2 largest economies can be reached. On the table are things like opening markets in both directions, China cracking down on infractions such as intellectual property theft and dumping of certain commodities into the U.S. market, and the U.S. ultimate position on North Korea and U.S. military presence in the region.

Please contact us at LRI if you have questions about how this may affect your exports or imports. As of now, any penalty duty tariffs that are in place in the U.S. and in China will remain. There will be a 90 day period where nothing will change from where it is today.