The Congressional Research Service, in a recent report, quantified the U.S.-China trade war and estimated its effects so far on bilateral trade. It said that as of Sept. 1, about 67 percent of U.S. imports from China have additional tariffs, most 15 to 25 percentage points higher, and about 60 percent of U.S. exports to China are taxed at an additional 5 percent to 25 percent.

International Trade Today is providing readers with some of the top stories for Oct. 7-11 in case they were missed.

President Donald Trump announced a "very substantial phase 1" deal in the Oval Office Oct. 11, saying the Chinese and American negotiators came to a deal on intellectual property, financial services and agricultural sales. The president said China will buy as much as $40 billion to $50 billion worth of American commodities. He also said good progress had been made on issues around technology transfer from American companies to Chinese partners.

Voxx had an $18.6 million sales decline in its fiscal Q2 ended Aug. 31, and 70 percent of that decrease was attributable to the company’s automotive OEM segment, said CEO Pat Lavelle on a Friday call. Though Voxx still expects new-car sales to decline year over year, it’s standing by forecasts of returning the company to an operating profit in the fiscal second half ending February, he said. Voxx narrowed its fiscal Q2 operating loss 33 percent to $7.7 million.

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.

Details remain vague about the “very substantial phase one” trade deal President Donald Trump announced at the White House Oct. 11 with China's Vice Premier Liu He that persuaded the president to delay hiking three rounds of Section 301 tariffs to 30 percent (see 1910110038). Trump “approved” the delay at Liu's request, “while we go through a process of documenting” phase one and putting the agreement on paper, Treasury Secretary Steven Mnuchin said.

Trade associations are circulating a letter to send to U.S. Trade Representative Robert Lighthizer calling for a delay to the EU tariffs set to begin on Oct. 18 (see 1910020044). "These new duties will not be borne by the EU producer or manufacturer of those now-dutiable goods, but by the American importers which have already purchased the products and, very quickly, by American consumers," the letter says. "Nearly every product impacted by these tariffs transits to the United States from Europe by sea. In order to arrive in Washington State or Alaska before October 18, shipments of these products would have had to depart Europe in the first half of September or earlier." The USTR should revise its plans so that "all goods exported from Europe October 2 or earlier [will] be exempt from tariffs." The agency allowed for a "similar accommodation" in May for the third tranche of Section 301 tariffs (see 1905310070).

CBP added the ability in ACE for importers to file entries with recently excluded goods in the second tranche of Section 301 tariffs on Oct. 8, it said in a CSMS messages. For the second tranche exclusions, filers of imported products that were granted an exclusion (see 1909300041) should report the regular Chapters 39, 70, 73, 84, 85, 86 and 90 Harmonized Tariff Schedule number, as well as subheading 9903.88.20. “Importers shall not submit the corresponding Chapter 99 HTS number for the Section 301 duties when" subheading 9903.88.20 is submitted, CBP said.

President Donald Trump announced a "very substantial phase 1" deal in the Oval Office Oct. 11, saying the Chinese and American negotiators came to a deal on intellectual property, financial services and agricultural sales. The president said China will buy as much as $40 billion to $50 billion worth of American commodities. He also said good progress had been made on issues around technology transfer from American companies to Chinese partners.

Fitbit will shift production to "outside China" starting in January for “effectively all of its trackers and smartwatches” to escape exposure to the tariffs on Chinese goods, said the company Wednesday. "Those products will no longer be of Chinese origin and therefore not subject to Section 301 tariffs,” said Fitbit, without disclosing where it's moving its sourcing. Smartwatches and fitness trackers, comprising the entire Fitbit product line, were hit with 15 percent List 4A tariffs Sept. 1 as part of the broad category of 8517.62.00.90 goods that also includes smart speakers and Bluetooth headphones (see 1908130028). The company began exploring potential alternatives to China last year, said Chief Financial Officer Ron Kisling. It altered its supply chain and manufacturing operations with “additional changes underway,” the company said. Fitbit said it will give additional details, including the financial implications, on its Q3 call within the month. Fitbit devices are assembled in China from parts and components sourced from Taiwan and Singapore, but shifting final assembly outside China “has been a very big challenge for us,” testified Executive Vice President-General Counsel Andy Missan at a Section 301 hearing in June. The devices require “high-precision assembly and high volume,” he said then. "We have not been able to find those characteristics in other locations,” despite looking throughout Southeast Asia, he said.