Trump Scraps Hiking 3 Tariff Rounds Tuesday to 30% After US, China Reach Partial Trade Deal
President Donald Trump suspended hiking three rounds of Section 301 tariffs to 30 percent as planned for Tuesday after U.S. and Chinese negotiators reached a partial "phase one" trade deal Friday, culminating two days of talks in Washington. The three rounds of tariffs will remain in effect at 25 percent. Tech and business groups hailed Friday's developments, but said they yearn for a comprehensive trade deal that would end all uncertainty and suspend all tariffs.
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
U.S. Trade Representative Robert Lighthizer said Trump hasn't decided whether to suspend the 15 percent List 4B tariffs due to be imposed Dec. 15. There apparently will be no rollback in the 15 percent List 4A tariffs that took effect in September.
“Finally, a ray of hope for the U.S.-China trade relationship," said the U.S. Chamber of Commerce, which Thursday had predicted a suspension in Tuesday's tariff hike if sufficient progress was made this week in Washington (see 1910100029). Postponing the tariff increase "is welcome news for American businesses, farmers, and consumers, and we are optimistic that this move paves the way towards a comprehensive, high-standard, and enforceable deal with China," said the Chamber.
Delaying the tariff increase to 30 percent is "welcome news for American businesses and consumers," said CTA. But the "one-step-forward, two-steps-back approach means U.S. businesses will continue to struggle under the burden of tariffs and uncertainty in supply chains," it said. U.S. entrepreneurs "thrive when they can dedicate their time and resources to innovating and competing globally, not checking Twitter for trade policy updates and combing through HTS codes to find which products are facing higher taxes," it said. CTA hopes Trump "will stop using tariffs as a weapon" during the phase one agreement process, it said.
The partial deal "is a step in the right direction," said the Information Technology Industry Council. "It’s critical that both sides capitalize on this momentum to conclude a broader agreement that addresses longstanding unfair trade practices and policies in a meaningful way and rolls back detrimental tariffs. It’s time for this trade war to come to an end.”
Retailers are "encouraged" the Trump administration "listened to the concerns of the business community as the trade war takes an increasing toll on the American economy," said the National Retail Federation. Delaying the planned tariff hikes is "welcome news" for retailers and consumers entering the holiday shopping season, but "the uncertainty continues," said NRF. "We urge both sides to stay at the negotiating table with the goal of lifting all tariffs and fundamentally resetting U.S.-China trade relations.”
"Relief" from Tuesday's anticipated tariff increase "is appreciated, but only a long-term agreement will alleviate the uncertainty inflicted by the trade war," said the Retail Industry Leaders Association, representing Best Buy, Target, Walmart and other big-box retailers. "We are encouraged by the reported productive tone of the US-China talks and will continue to press the administration for a comprehensive trade deal that ends the tariffs on all product lines.”