China Tariffs Update

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China Tariffs Update



China Tariffs Update

Negotiations continue between the U.S. and China to resolve trade differences and the timetable for results is drifting. Previously the Administration announced its intention not to raise tariffs further after March 1st despite not reaching an agreement. The President announced that he was expecting to defer further action subject to continued negotiations and the expected meeting with Chinese President Xi Jinping later this month.

Now the indications are that the presidential meeting will not take place until later in April. Negotiators continue discussions in an effort to resolve U.S. concerns regarding intellectual property, technology transfer, currency and other issues with additional meetings scheduled in Washington in early April.

Recent press reports have mentioned an issue negotiators are struggling with is how to enforce new concessions the parties might be moving toward. The President has publicly stated that he might leave current "tariffs in place for a substantial period of time" to ensure China lives up to any commitments. This will probably not be well received by China, especially if they are considering concessions, but there has not been any specific reaction reported.

It is not clear where the finish line is for these negotiations but leaving tariffs "as is" for now is better than the increase which was hanging over shippers for a long time. We will continue to monitor this situation and keep you informed.