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 email@example.com or 202-853-9351 if you have any questions or would like additional information.