Last week President Trump and President Xi met in Argentina over a dinner meeting during the G20 Summit. Besides probably having an amazing steak dinner, they reached an agreement to set a 90 day truce or halt in the trade war while both parties sit down at the negotiating table to restore balance in trade
The White House released a statement saying that China has agreed to purchase significant “agricultural, energy, industrial, and other product from the US”.
Also China is allegedly considering allowing more access to its market, greater protection for intellectual property, and stopping exports of drug fentanyl into the US markets which has led to much abuse and deaths. The specifics of the treaty are beyond the scope of what we’re concerned with but as e-commerce sellers.
But here is the Key takeaway as far as you’re concerned.
A 90 day truce in the trade tariffs means that the $200bn in tariffs will be kept at 10% during the truce. They will not be raised to 25% on Jan 1, 2019 as previously believed
But at end of 90 days, if no agreement is reached, then the tariffs will jump to 25% as previously stated according to White House representative Jill Sanders.
What does this mean?
The good news is that if your products are part of the $200bn package, then your tariffs will be kept at 10% during the truce as both sides are negotiating for a deal. They will not rise to 25% on Jan 1, 2019.
However you’re not out of the woods yet.
Whether there will be a “Real Deal” as Trump calls it or more clashing between both sides, time will tell!
But at least the tariffs are not increasing as far as we’re concerned in the next 90 days.
Not sure if your products are covered in the tariffs?
The US Trade Representative office has released an online search tool that lets you search for your product by HS Code to see if they are included in the tariffs. You can access it here:
To be continued..