As many of you already know, the USA-China tariff dispute is still a hot topic. Yet, many people also remain unclear as to how we arrived at where we currently are. In most polls taken, there’s a certain percentage of “for”, “against”, and “undecided” positions. Hence, there’s much debate over the short and long-term impact of the back-and-forth tariff talks between the US and China.
Furthermore, with all the discussions taking place, you can find nearly every position on the web. Subsequently, and based on the source of the opinion, those positions are far more predictable than surprising. One thing is for certain, the US-China tariff timeline can be confusing.
Needless to say…
It’s Been an Interesting Six Months
First and foremost, if you’re like most of us, you may still wonder how we actually got to this point. There’s great confusion between the threatened tariffs, the actual tariffs, the different lists of goods, the “tranches”, and changing percentages. As such, ITI Manufacturing has provided several details below to help clarify some of this confusion. We designed the following layout to offer an easy-to-read timeline of what has happened so far…
President Trump announces a move forward with tariffs on all steel and aluminum imports and metals from China.
President Trump announces plans to impose a 25% tariff on $50 billion worth of Chinese goods. China announces tariffs to retaliate for the metal tariffs and also that they will respond to the just-announced 25% tariffs.
A US trade representative publishes a list of Chinese goods that will subject to the additional tariffs. A 60-day comment period is established to receive comments from various industries to make their cases for exemptions.
In a retaliatory move, China publishes a list of 100+ goods that are made in America with an approximate value of $50 billion that are subject to additional tariffs.
The US and China announced an outline of a trade deal to avoid tariffs after a meeting between the two countries.
The US announced that tariffs on $50 billion worth of Chinese goods will move forward after all. A final list is announced to be released on June 15th. (So much for the trade deal.)
The final list of imports from China manufacturing, worth $34 billion, is announced and subject to the previously announced 25% tariff to become effective on July 6th. An additional $16 billion of imported items to be subject to tariffs sometime in the future. China announces an equal amount of tariffs on American goods.
President Trump announced the possibility of a 10% tariff on an additional group of $200 billion of Chinese imported goods.
The first part (tranche) of the previously announced tariffs on the $34 billion of Chinese goods goes into effect. China again responds with similar tariffs.
An additional, initial list of $200 billion of Chinese imported goods is announced that could be subject to a 10% tariff.
The US declared they are considering increasing the proposed tariffs (that do not exist yet) on the $200 billion of Chinese goods (announced on July 10th) from 10% to 25%.
China came back with a threat to impose tariffs on $60 billion worth of US goods if the US moves forward with its latest tariff threat.
The US announced that effective August 23rd; the second part (tranche) of tariffs will go into effect on $16 billion of Chinese goods.
China’s Commerce Ministry said a vice minister would travel to the US on an as yet unspecified date, at the invitation of the US’s Treasury Department, to discuss trade issues. A senior US government official is quoted as saying, “We expect to discuss steps to achieve a more balanced trade relationship.”
Partnering with a China Manufacturing Liaison is Crucial
No matter how your company is impacted by US-China tariffs, ITI Manufacturing is a viable liaison source for your products made in China. We manage your manufacturing to achieve a competitive, landed cost either here in the US, or to any foreign port destination. We also manage the total manufacturing supply chain while guaranteeing no manufacturing defects.
At ITI, we oversee your international logistics to ensure your goods are delivered correctly to the international port of choice. With us, your products are manufactured correctly, packaged correctly, and delivered correctly with all paperwork supplied to you. Will your customers pick up at the China port? No problem. Our dedicated, full-time China staff works seamlessly with your customer’s freight forwarding company. Our goal is to always ensure a smooth and penalty-free handoff at the China port.
Would you like to know more about how ITI takes responsibility for the off-shore burden so you can spend more time managing and growing your business? Call us at 888-574-6823 and speak with one of our experts today.