Page 13 - February-March-2020

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US-China trade deal
US-China trade deal

Phase One leaves much
Phase One leaves much

to be desired, especially
to be desired, especially

for textiles
for textiles

tration said the 15 percent punitive tariffs on Tranche ranche
The rapidly shifting goalposts of the US-China tariff -China tariff tration said the 15 percent punitive tariffs on T
The rapidly shifting goalposts of the US
4A products would be halved to 7.5 percent. Howev--
war suddenly took a positive step back as both
war suddenly took a positive step back as both 4A products would be halved to 7.5 percent. Howev
er
countries found some common ground and finally
countries found some common ground and finally er, it would come into effect 30 days after the signing , it would come into effect 30 days after the signing
signed the phase one of a trade agreement. Indus--
signed the phase one of a trade agreement. Indus of the agreement, which was done on 15th January
of the agreement, which was done on 15th January
tries all around took a breath of relief as both presi-- 2020, which means the reduction in the tariff would
tries all around took a breath of relief as both presi
2020, which means the reduction in the tariff would
dents sat down and inked the deal on 15th January
dents sat down and inked the deal on 15th January take effect on 14th February 2020.ebruary 2020.
take effect on 14th F
2020. Delegations from both sides had finally
2020. Delegations from both sides had finally
Tranche 4A covers around $3.7 billion in textile, ranche 4A covers around $3.7 billion in textile,
reached a ‘Phase One’ deal on 13th December T
reached a ‘Phase One’ deal on 13th December
apparel, and home textile products.
2019.
2019. apparel, and home textile products.
Although this is a relief for business on both sides, F
For Tranche 4B, a planned increase in tariff from 10 or Tranche 4B, a planned increase in tariff from 10
Although this is a relief for business on both sides,
much is still left to be desired, especially for the
percent to 15 percent has been suspended and the
much is still left to be desired, especially for the percent to 15 percent has been suspended and the
textiles and garments sectors. Since 2018, the US products, including around $4.7 billion US imports in
products, including around $4.7 billion US imports in
textiles and garments sectors. Since 2018, the US
textile, apparel, and home textile products, will
had slapped tariffs on US$550 billion worth of
had slapped tariffs on US$550 billion worth of textile, apparel, and home textile products, will
Chinese products. China, in turn, set tariffs on
Chinese products. China, in turn, set tariffs on continue to have 10% tariff imposed on them.
continue to have 10% tariff imposed on them.
US$185 billion worth of US goods.
US$185 billion worth of US goods.
Under the phase one agreement, China has also
Under the phase one agreement, China has also
The US imposed 25 percent tariff rate on tranches 1, agreed to purchase $200 billion more US products
The US imposed 25 percent tariff rate on tranches 1,
agreed to purchase $200 billion more US products
2, and 3, which are still in effect. T compared to its baseline of $186 billion in 2017.
2, and 3, which are still in effect. Tranches 1 and 2 do ranches 1 and 2 do
compared to its baseline of $186 billion in 2017.
These will include farming and other products.
not cover any textile or apparel products, but in These will include farming and other products.
not cover any textile or apparel products, but in
tranche 3, around $3.7 billion textile products are
tranche 3, around $3.7 billion textile products are
Steve Lamar, president and CEO of the American , president and CEO of the American
bearing the brunt of the tariff and will continue to do
bearing the brunt of the tariff and will continue to do Steve Lamar
so until a ‘Phase T
so until a ‘Phase Two’ of the deal comes around.wo’ of the deal comes around. Apparel & Footwear Association, said 92 percent of ootwear Association, said 92 percent of
Apparel & F
apparel, 53 percent of footwear
apparel, 53 percent of footwear, 68 percent of home , 68 percent of home
textiles, and all of the travel goods and accessories
The only area that the current deal covers is tranche textiles, and all of the travel goods and accessories
The only area that the current deal covers is tranche
imported from China will continue to be hit.
4A and 4B. As part of the deal, the Trump adminis-rump adminis- imported from China will continue to be hit.
4A and 4B. As part of the deal, the T
January/February 2020
February/March 2020 January/February 2020
January/February 2020