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Trade and Tariff Developments for 2020

January 1, 2020

Significant progress has been made with regard to the issue of tariffs in the trade dispute between the United States and China. The USTR announced on Dec. 13, 2019, the completion of a Phase One trade agreement with China.  U.S. tariffs on List-4B products that were subject to 15% duties set to commence on Dec. 15, 2019, were cancelled, and tariffs on List 4A products were reduced from 15% to 7.5%. The 25% tariffs for Lists 1-3 stay in place, but negotiations will continue for an agreement that eliminates all remaining tariffs next year.

IHA was active in pushing for the elimination of the List 4B (Tranche 4B) tariffs and joined the attached letter with other organizations participating in the Americans for Free Trade coalition that was sent to the administration on Dec. 11, 2019. 

Progress in resolving the U.S.-China trade dispute is a win for IHA, and there’s more good news with the U.S. House of Representatives passing the U.S.-Mexico-Canada (USMCA) trade agreement before the holidays.  However, the trade dynamic for 2020 can be expected to remain volatile with China, as well as France (in retaliation for its digital tax) and the European Union per a World Trade Organization (WTO) ruling that it unfairly subsidized Airbus aircraft.

Filed Under: All Posts, Government Affairs & Legal, Industry Resources Tagged With: Government Affairs

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