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Tariff increase on hold after Buenos Aires meeting

The presidents of China and the US met at the G20 Summit in Buenos Aires on December 1 to discuss the trade tensions between the two countries. There were differences between statements the two governments made public after the meeting, but the communiqués did have several points in common.

They reached consensus not to impose new additional tariffs on traded goods and agreed to instruct their economic teams to step up negotiations toward the removal of all additional tariffs.

Tariffs that came into force in the summer of 2018 on imports into the US from China were to increase from 10% to 25% on January 1, 2019. Those increases will not now take place.

However, negotiations on structural changes with respect to technology transfers, intellectual property protection, non-tariff barriers and other areas will begin immediately. They will endeavour to have this transaction completed within the next 90 days. If at the end of this period of time, the parties are unable to reach an agreement, the 10% tariffs will then be raised to 25%.

Smit & Zoon Jan20 cannot be held responsible for content if the language setting is changed from English. The translations provided by Google Translate are automated and therefore might not be accurate and may contain incorrect, offensive or misleading language. We offer this facility as a guide only.

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