The White House today announced continued progress in trade negotiations with China. Although current tariffs on Chinese imports are largely untouched (see below), China has agreed to reforms addressing intellectual property and technology, agriculture, financial services, and current and foreign exchange. It also has committed to increase purchases of U.S. goods and services, and to establish a process to quickly resolve trade disputes.
The new agreement leaves the current 25 percent Section 301 tariffs on Lists 1, 2 and 3 untouched. These are the tariffs that most substantially impact National Association of Food Equipment Manufacturers members and other manufacturers. It reduces the tariffs on List 4A from 15 percent to 7.5 percent. List 4A tariffs primarily impact the smallwares side of the industry. The new agreement also further postpones the planned December 15 List 4B tariffs, which largely affect consumer electronics and apparel.
Until the new agreement is published in the Federal Register and the U.S. Trade Representative issues customs instructions, further details are unavailable. NAFEM and its legal team at Barnes & Thornburg are closely watching for more information.
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Representatives from all three countries have signed the amended United States – Mexico – Canada Agreement (USMCA) after House Democrats and U.S. Trade Representative Robert Lighthizer worked with Mexico to address concerns around enforcement, labor and environmental standards, and prescription drug pricing.
The administration now needs to submit USMCA legislation to Congress, which will have 90-days to discuss and vote on the agreement. The White House has not yet released the final USMCA document. Here, it also is important that NAFEM members continue to voice their support for USMCA and encourage Congressional representatives to send it to the Senate to ratify. NAFEM is also closely monitoring this situation.