Temporary Cease-Fire in China Trade War
On December 1, President Trump and Chinese President Xi announced a cease-fire in the escalating trade war between the U.S. and China. As part of the cease-fire, President Trump agreed to not raise the punitive tariffs on U.S. travel goods imports from China from 10% to 25% for at least 90 days, i.e. until around March 1, 2019, while the two sides attempt to negotiate a larger trade agreement. While this is a great first step, note that the 10% punitive tariffs on U.S. travel goods imports remain in effect. Please also note that there is no guarantee that the two sides will reach a final deal by March 1. As such, an increase in the punitive tariffs on U.S. imports of travel goods from China from 10% to 25% on or around March 1 remains a real possibility. Please contact TGA’s Nate Herman at firstname.lastname@example.org or 202-853-9351 if you have any questions or would like additional information.
TGA Opposes Removal of GSP Benefits for Indonesia and Thailand
On November 29, TGA testified at a second hearing reviewing benefits for Indonesia and Thailand under the U.S. Generalized System of Preferences (GSP) program. Under GSP, U.S. travel goods imports from Indonesia, Thailand, and many other developing countries (Cambodia, India, Myanmar, etc.) enter the U.S. duty-free. In its testimony, TGA strongly opposed the removal of GSP benefits for U.S. travel goods imports from Indonesia and Thailand. This second review of the two countries was spurred by concerns over intellectual property rights (IPR) in Indonesia and labor rights in Thailand.
More California Proposition 65 Notices Issued
In the month, new “60-day” notices have been issued alleging that brands and retailers sold totes (Notice 1, Notice 2), travel tech sets (Notice 1), travel sets (Notice 1, Notice 2, Notice 3), fannypacks (Notice 1, Notice 2), handbags (Notice 1, Notice 2, Notice 3, Notice 4, Notice 5, Notice 6), wallets (Notice 1, Notice 2), backpacks (Notice 1, Notice 2, Notice 3, Notice 4), smartphone pouches (Notice 1), cosmetic bags (Notice 1, Notice 2), handbag organizers (Notice 1), and neck pillows (Notice 1) in California that contained di (2-ethylhexyl) phthalate (DEHP) and/or diisononyl phthalate (DINP) in violation of a California law known as Proposition 65 (Prop 65). The notices serve as intent to bring lawsuits against the recipients of the notices that sold these products. On a related note, on August 30, 2018, California imposed new Proposition 65 warning label requirements. TGA recently published a new member-only tool for TGA members on how to comply with the new California Prop 65 warning label requirements. For more information on Prop 65, please go to the Prop 65 page on the TGA website or contact TGA’s Nate Herman, email@example.com, 202-853-9351.
TGA Continues to Fight Trump’s 10% Punitive Tariffs on U.S. Imports of Travel Goods from China, Which Will Rise to 25% on January 1
On September 24, President Trump imposed a 10% punitive tariff on U.S. imports of ALL travel goods from China. Those tariffs will rise to 25% on January 1, 2019. The 10% tariffs are in addition to the tariffs we already pay on U.S. imports of travel goods. On September 26, TGA urged the Trump administration to create an exclusion process for the new tariffs. President Trump’s decision to not allow an exclusion process ignores the hardships these new duties will impose on the U.S. travel goods industry and its 100,000 American workers. Read more here about what TGA is doing to fight the tariffs.