Dear Valued Customer,
The United States and China have reached an agreement on a Phase One trade deal to de-escalate the ongoing trade war between the countries. The agreement, announced on December 13, by the United States Trade Representative (“USTR”), includes agreements from China to purchase American goods and reform certain trade practices deemed harmful to the U.S.
In exchange, the U.S. will cancel plans to impose new tariffs of 15% on $156 billion in annual imports from China (List 4B), which was planned to go into effect December 15, 2019. Additionally, the U.S. will reduce the tariff rate on List 4A products from 15% to 7.5%. According to the USTR, the 25% tariffs currently in effect for Lists 1, List 2, and List 3 will remain in effect pending future phases of the agreement.
Details as to when and how the tariff rate reductions will go into effect will be available when the agreement is finalized and published in the Federal Register.
Link to USTR statement.
Thank You,
