China Trade WarInternational TradeUncategorized

U.S. and China Reach ‘Phase 1 Deal’

posted by Jennifer Diaz October 11, 2019 6 Comments

Trump Announcement

Today, President Trump and the Chinese government announced a “Phase 1 Deal” and suspended the proposed increase in tariffs for products (on Lists 1, 2, and 3) that were set to begin on October 15. The scheduled tariff was set to increase from 25 to 30 percent on $250 billion worth of Chinese imports. In exchange, the Chinese government will buy $40-50 billion worth of American agricultural goods, and the agreement will include terms on both intellectual property rights and financial services.

Update Tariff Chart pic

The deal will take about three to five weeks to write (and is only effective when written and signed) and is scheduled to finalize mid-November. Here is a full video of the President’s announcement.

President Trump is looking forward to meeting with Chinese leader Xi Jinping at November’s Asia-Pacific Economic Cooperation leaders’ summit. “We are very close to ending the trade war,” remarked President Trump.

In August, the Office of the U.S. Trade Representative sought public comments on this proposed increase, which would affect the following:

  • 818 tariff subheadings with an approximate annual trade value of $24 billion (list 1 goods)
  • 279 tariffs subheadings with an approximate annual trade value of $26 billion (list 2 goods)
  • 5,733 tariff subheadings with an approximate annual trade value of $200 billion (list 3 goods)
    • Lists 1, 2, and 3 total $250B together

However, no announcement was made on the suspension of already existing tariffs (or the List 4A tariffs scheduled to begin on October 15 and December 15 respectively for 300B worth of goods). The tariffs on goods subject to List 1, 2, and 3 is set to remain at 25%.

For background information on China Tariffs and numerous ways to mitigate the effect of the China tariffs, check out our previous blogs. Diaz Trade Law has assisted clients in assessing their best options to prepare or mitigate the China tariffs and submitted comments and exclusions. Our Customs and International Law attorneys are available at 305-456-3830 or info@diaztradelaw.com.

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6 Comments

BREAKING NEWS: China Trade War Update - List 4A Reduced to 7.5% and List 4B will NOT become effective on 12/15 | Customs & International Trade Law Blog December 13, 2019 at 2:52 pm

[…] for a news update on whether U.S. & CHINA reached a “PHASE ONE DEAL” since we last wrote about it on October 11, 2019. Two months later, the USTR published a press release confirming that the United States and China […]

Reply
Customs & International Trade Law ExpertBREAKING NEWS: China Trade War Update - List 4A Reduced to 7.5% and List 4B will NOT become effective on 12/15 - Customs & International Trade Law Expert December 13, 2019 at 3:03 pm

[…] for a news update on whether U.S. & CHINA reached a “PHASE ONE DEAL” since we last wrote about it on October 11, 2019. Two months later, the USTR published a press release confirming that the United States and China […]

Reply
BREAKING NEWS: U.S.-China Phase 1 Deal is Officially Signed | Customs & International Trade Law Blog January 16, 2020 at 12:17 pm

[…] information on China Tariffs and numerous ways to mitigate the effect of the China tariffs, check out our previous blogs. Diaz Trade Law has assisted clients in assessing their best options to prepare or mitigate the […]

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Customs & International Trade Law ExpertBREAKING NEWS: U.S.-China Phase 1 Deal is Officially Signed - Customs & International Trade Law Expert January 16, 2020 at 12:21 pm

[…] information on China Tariffs and numerous ways to mitigate the effect of the China tariffs, check out our previous blogs. Diaz Trade Law has assisted clients in assessing their best options to prepare or mitigate the […]

Reply
Section 301 Tariff Updates: USTR Grants Exclusions & Seeks Comments on Products Necessary to Combat COVID-19! | Customs & International Trade Law Blog March 28, 2020 at 10:24 am

[…] information on China Tariffs and numerous ways to mitigate the effect of the China tariffs, check out our previous blogs. Diaz Trade Law has assisted clients in assessing their best options to prepare or mitigate the […]

Reply
Customs & International Trade Law ExpertSection 301 Tariff Updates: USTR Grants Exclusions & Seeks Comments on Products Necessary to Combat COVID-19! - Customs & International Trade Law Expert March 28, 2020 at 10:36 am

[…] information on China Tariffs and numerous ways to mitigate the effect of the China tariffs, check out our previous blogs. Diaz Trade Law has assisted clients in assessing their best options to prepare or mitigate the […]

Reply

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