US, China agree to ‘phase one deal’ just before next tariff hike
China and the US announced that they had reached a phase one trade deal, just prior to new tariffs coming into effect on that would have affected the mass of consumer goods, including popular electronics like smartphones and laptops.
The US has agreed not to proceed with 15 percent tariffs on US$160 billion worth of consumer goods previously scheduled to take effect December 15, 2019, and will reduce the September 1, 2019 tariffs on US$120 billion of Chinese goods – halving it from 15 to 7.5 percent. However, the 25 percent tariffs on US$250 billion of Chinese imports will maintain, and further reductions will be linked to progress in future trade negotiations.
China, on its part, has agreed to increase the purchase of US goods and services by at least US$200 billion over the next two years, suspend retaliatory tariffs, implement intellectual property safeguards, and have a tariff exclusion process in place. It appears that among its potential purchases, China will import US agricultural products worth US$40 billion to US$50 billion – in each of the next two years.
A Chinese trade delegation is planning to travel to Washington on Jan. 13 for the signing of the U.S.-China Phase 1 trade deal, Jan. 15, 2020.
Current 25% Tariffs
As a review, here is a breakdown of GCP brands and products currently impacted by the 25% tariff.
- Premlene Sheet Rubber & Engineered Structures
- National Silicone (Solid & Sponge Silicone)
- Rubatex Sponge Rubber
- Ceramic Tiles
- Clamps (Worm Gear and RC), Couplings (Shielded and No Hub) and Shear Bands
- Hose (Rubber, PVC & TPU) with and without fittings
Tariffs Reduced From 15% to 7.5%
GCP brands and products currently impacted by the 7.5% tariffs.
- PVC Couplings
As always we will do what’s best for supporting our customers and our business by supplying high performance, cost competitive materials. In the meantime, we are available to answer any questions you might have. We appreciate your continued partnership through these changes.
The GCP Team