The U.S. is still on track to hit the industry with high duties on Chinese imports of apparel, footwear and sports & fitness equipment.
Despite increased pressure for a resolution, the U.S.-China trade talks have deteriorated over the last two weeks.
It’s never a good sign when the two-sides start “negotiating in public” with hardline demands that ratchet up the public rhetoric. Both sides have retreated to their corners and dug in, with no clear pathway for resolution in the immediate future. The next possible “reset” moment is a potential meeting between Chinese President Xi and President Trump around the G20 Summit in Osaka, Japan, on June 29, which is two weeks after the List 4 tariffs go into effect.
It is hoped that the U.S. and China can make progress prior to end of June, but talks are not expected to deliver substantive resolution any time prior to the Summit. If there is no agreement, high tariffs could become a “new status quo” that maintains the current tension level through the 2020 U.S. elections. Both sides may decide they can weather any economic harm and “outlast” the other. President Trump could potentially incorporate a continued aggressive stance against China in his re-election strategy, as he prepares for the 2020 campaign cycle.
While Congress
continues to push the President on his tariff strategy and the negative impact
of a trade war with China, they do not appear to have any options for ending
the escalating tariffs. The President holds all the cards right now, and China
has a big stack of chips to play with… Will anyone blink?
SFIA is organizing a China Tariff Exemption Plan to help eliminate
tariffs.
If you wish to participate in SFIA’s tariff exclusion
petition process please fill out the confidential questionnaire form and submit
it via email by MAY
28th to Chandler Hoffman, choffman@sfia.org.
CLICK HERE for the confidential questionnaire petition form,
the HTS codes affected by “List 4” and more detailed information.
