U.S. and China have reached a Phase One trade agreement
The United States and China have reached a phase one trade agreement. Announced this morning by President Trump on twitter, the U.S. has agreed to cancel the penalty tariffs set to go into effect on December 15th covering List 4B.
According to the President’s tweet, China agreed to large purchases of agricultural products, energy, and manufactured goods. There is further reporting that China agreed to open its financial markets to more foreign investment and enact new protections against intellectual property theft. In return, the U.S. will halt the imposition of additional tariffs on List 4B products.
In addition, the President indicated “the 25% Tariffs will remain as is, with 7 ½% put on much of the remainder.” Based upon our current understanding, this change refers to the tariff rates currently imposed on List 4A products, will be reduced by half down to 7.5%.
This situation remains fluid and we will continue to provide real time updates as any new details are confirmed.
If you have any questions, please reach out to Bill Carey, Import Compliance Manager, at email@example.com or (800) 493-9444.