Dear Valued Customer:
President Donald Trump now says he’ll raise tariffs on $200 billion worth of Chinese imports from the 10% levies he imposed last year, to 25%, effective May 10. This move comes because China is moving “too slowly” in trade talks, Trump tweeted.
The tariffs were initially slated to rise from 10% to 25% at the beginning of the year, but were delayed until March 1 to allow for negotiations between the two countries. That deadline came and went with no deal, and no additional tariffs, until this Friday.
Trump has complained loudly about the steep U.S. trade deficit with China. That’s something China can address, by directing state-owned firms to buy more U.S. exports, such as energy and food. However, China is more reluctant to give up government control of industry, stop pirating foreign technology and let U.S. firms operate more freely in the Chinese market. Unlike Western democracies, China aggressively controls sectors of the economy it considers strategically important and trade experts insist China won’t do that.
We recommend the use of the Estimated Entry Date and Elected Entry Date for any shipments arriving into US port limits on or before this Thursday to lock in the rate of 10%.
Thank you for your attention and cooperation. If you have any questions, please contact your nearest JJB representative.
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