"Substantial Progress" in Trade Talks Delays Tariff Increase
With the deadline looming in the distance, the Trump Administration reported “substantial progress” in its trade talks with Chinese officials leading to the decision to delay tariff increases. Previously slated for March 1, tariffs were projected to increase to 25 percent from 10 percent on $200 billion of Chinese exports.
The National Retail Federation issued the following statement from President and CEO Matthew Shay after the tariff extension was announced:
“We welcome the progress made between the U.S. and China and commend the administration for its efforts to address unfair trading practices. The decision to avoid a tariff hike is a positive development, and we encourage the administration to build on this momentum and reach a resolution that will eliminate uncertainty for American businesses and consumers. We look forward to continued progress and an agreement that will end tariffs and achieve a more fair and balanced trading relationship.”
Recent tariffs imposed by the administration have cost U.S. businesses $2.7 billion in November 2018 alone, according to Tariffs Hurt the Heartland. The NRF backed campaign also released a report that found American workers would lose nearly one million U.S. jobs if the tariffs increased to 25 percent.
The Consumer Technology Association responded to a tweet from President Trump announcing the decision saying:
“We welcome the Trump administration not raising tariffs to 25 percent. Today, tariffs are costing the tech industry an additional $1 billion per month and virtually the cost of 5G products and parts from China have skyrocketed. We urge both sides to move forward to a permanent resolution that will address trade issues with China, while also protecting American leadership in innovation.”