China Tariff Scheduled For October 15, 2019 Suspended
The 30% China Tariffs that were to take place effective today October 15, 2019 will not go into effect according to the White House. Treasury Secretary Steven Mnuchin announced on Friday the suspension of the additional duties from 25% to 30% on products on Lists 1, 2 and 3.
This three-phase deal with China, however, does not affect the increased tariffs scheduled for December 15, 2019 for those products on List 4B nor does it affect any other additional tariffs currently on Chinese goods.
Phase 1 includes an agreement where China would increase their purchases of U.S. farm goods of up to $50 billion within the next two years. Previously, China had agreed to the purchase of pork and soybeans.
Phase 2, dealing with technology issues will is expected to begin shortly after Phase 1 within the next two or three weeks after Phase 1 has been concluded. President Trump indicated there are still many issues to address in the coming weeks but he is optimistic that the U.S. and China will finalize this agreement and could be signed as early as mid-November at a summit in Chile.
Phase 3 details are murky and, whatever it would entail, will happen only if necessary.
We will continue to monitor the situation and advise of any further developments.