Today, the United States and China reached the first phase of a trade agreement commencing a resolution to the ongoing trade war that began in March 2018. As such, the United States Trade Representative (USTR) announced the cancellation of the Section 301 List 4B tariff, which was previously supposed to take effect this weekend.
Due to this agreement, the List 4B tariff, which was to be assessed beginning December 15, will not be charged and duty on List 4A will be reduced to 7.5%. US Customs & Border Protection will continue to assess tariffs on Lists 1, 2, and 3 at the same 25% duty rate.
List | Import Value Impacted | Duty Rate | Effective Date |
1, 2, 3 | 0 billion | 25% | Current |
4A | 0 billion | 7.5% | TBA |
4B | 0 billion | - | Cancelled |
For the full scope of this action, please review the USTR publications below:
United States and China Reach Phase One Trade Agreement
USTR Notice to Suspend List 4B Tariff Indefinitely
PHOENIX is committed to keeping our customers informed on current market conditions and will continue to monitor the situation as it develops.
Should you have any questions regarding this update, please contact your OEC Group Brokerage Representative.
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