There is no escaping the controversial impact of the US-China trade war, especially if you work in imports. Both sides have exchanged heated, economic blows throughout the course of the conflict and neither are willing to admit any negative impact it has on their respective countries.
However, it seems that tensions are looking to de-escalate once more. On the anniversary of the September 11 attacks, U.S. President Donald Trump announced that the proposed tariffs against Chinese has been delayed in a ‘gesture of good will.’ Rather than impose the tariffs on the 1st of October, it has been pushed back to the 15th.
Many commentators are speculating as to the primary motive behind the gesture. Among the factors include Beijing’s own decision to remove some of its tariffs on American products. Another is the fact that October 1 is the National Day of the People’s Republic. And of course, October is also the month when trade talks between the two rival economies will resume.
Still, importers should be careful about operating on this latest decision by Washington. You might still want copies of Lists 1 to 3 on hand. The tariffs are delayed, but they have not been scrapped.
They are still poised to increase rates in the near future, including a 30% rate on numerous Chinese imports that amount to 250 billion USD. There is no product category that has been exempt from this trend. The tariffs of the Trump administration have hit everything from handbags to steel.
That means companies with supply chains caught in the midst of the trade war should double efforts to re-evaluate their networks and prepare for both the worst-case and best-case scenarios. As it stands, Beijing is still prepared to press on with its economic activities despite the status quo and Trump shows no sign of backing down.