{"id":4379,"date":"2020-03-05T18:39:44","date_gmt":"2020-03-05T18:39:44","guid":{"rendered":"https:\/\/siships.com\/?p=4379"},"modified":"2020-06-24T17:38:33","modified_gmt":"2020-06-24T17:38:33","slug":"phase-one-of-us-china-trade-deal-reduces-tariffs","status":"publish","type":"post","link":"https:\/\/siships.com\/blog\/phase-one-of-us-china-trade-deal-reduces-tariffs\/","title":{"rendered":"Phase One of US-China Trade Deal Reduces Tariffs"},"content":{"rendered":"

Chinese and American Exports See Decrease in Duty Rates<\/h2>\n

As part of a Phase One Economic and Trade Agreement between the United States and China, signed on January 15, 2020, both countries have halved tariffs on many imported goods. The relevant duty reductions were applied on February 14, 2020.<\/p>\n

China\u2019s reductions<\/a>\"us-china<\/a> will affect only the extra tariffs put in place on American imports last September. Tariffs on U.S. crude oil will drop from 5% to 2.5%, while total duties on soybeans are reduced from 30% to 27.5%. In total, this will affect roughly $75 billion of exports<\/a> from the United States. China\u2019s Ministry of Finance<\/a> announced the reduction and stated it was designed to \u201cadvance the healthy and stable development of China-U.S. trade.\u201d<\/p>\n

Similarly, a White House spokesman<\/a> stated the China trade deal \u201cprotects American innovation and creates a level playing field for our great farmers, ranchers, manufacturers, and entrepreneurs.\u201d As of February 14, the U.S. has cut duty rates from 15% to 7.5% for a wide variety of goods, including any imports which fall under List 4A<\/a>. These Chinese imports account for about $120 billion<\/a> of goods. For List 4B<\/a>, planned additional duties of 15% have been suspended. However, an additional $250 billion of goods will retain a 25% tariff<\/a>, including Lists 1, 2, and 3.<\/p>\n

For updated duty rates for all lists, see STR Trade’s compilation<\/a>.<\/strong><\/p>\n

Effects of the China Trade Deal<\/h3>\n

International trade relationships with China have also been recently affected by COVID-19<\/a>, which has shut down factories, seriously reduced the efficiency of ports and delayed supply chains across Asia. Former Macy\u2019s CEO Terry Lundgren has stated that the combined effects of coronavirus and the Chinese trade war<\/a> have revealed the retail supply chain\u2019s potentially detrimental reliance on China. Similarly, American technology companies including Apple<\/a> and Google<\/a> are looking to reduce their reliance on China\u2019s production. Supporters of the administration\u2019s efforts agree that the trade war<\/a> was a necessary step in forcing a shift away from dependence on Chinese production.<\/p>\n

Most business leaders, including executives from Goldman Sachs Group Inc<\/a>., Intel Corp., and Boeing Co., are in favor of the new trade agreement, though they hope these negotiations will continue.<\/p>\n

In contrast, the deal has been criticized<\/a> as being harmful to privately-owned businesses in China who can\u2019t afford the more expensive American imports, allowing state-owned enterprises more market power. Additionally, as the agreement<\/a> requires China to purchase $200 billion of American goods within two years, government-subsidized SOEs are likely to increase their share of imports. Critics of the China trade deal say this is counterintuitive<\/a> to the Trump administration\u2019s focus on reducing SOE\u2019s influence over the economy. Trump trade advisor Peter Navarro has stated that these state-owned enterprises will be the target of \u201cphase two\u201d trade talks<\/a>.<\/p>\n

Stay Up-to-Date with Tariff Changes<\/h3>\n

SIShips makes it easier to keep track of international trade shifts and how they might affect your shipments.<\/p>\n

Learn more about how SIShips can simplify your freight experience.<\/a><\/h4>\n","protected":false},"excerpt":{"rendered":"

Chinese and American Exports See Decrease in Duty Rates As part of a Phase One Economic and Trade Agreement between the United States and China, signed on January 15, 2020, […]<\/p>\n","protected":false},"author":186,"featured_media":4381,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[24],"tags":[58,61,63,65,66,64,60,62],"yoast_head":"\nPhase One of US-China Trade Deal Reduces Tariffs - SiShips<\/title>\n<meta name=\"description\" content=\"The United State's new trade deal with China results in reduced tariffs from both countries, affecting more than $75 billion of American exports.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/siships.com\/blog\/phase-one-of-us-china-trade-deal-reduces-tariffs\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Phase One of US-China Trade Deal Reduces Tariffs - 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