The move last week aimed to deescalate the ongoing trade war reduces some US tariffs in exchange for increased Chinese purchases of American farm goods
The so-called “Phase one Trade Agreement” reached last week between the US and China has some US business groups – like the recreational marine industry – “hailing the deal as an end to uncertainty that’s slowed global growth, but critics questioned whether the trade war had been worth the job losses and drop in sales,” reports Reuters.
The move last week aimed to deescalate the ongoing trade war reduces some US tariffs in exchange for increased Chinese purchases of American farm goods. President Trump said he thought ”China would hit $50bn in agricultural purchases.” However, Reuters also reports Chinese officials “offered no specific details on the amount of US agricultural goods Beijing had agreed to buy, a key sticking point in recent deal negotiations to end the 17-month trade war between the world’s two largest economies.”
“We are grateful that the US and China reached an initial deal to deescalate the trade war, which cancels a range of tariffs on marine products that were scheduled to take effect over the weekend and slashes in half existing tariffs on certain fishing gear and tackle, inflatables, and water sport equipment,” said National Marine Manufacturers Association (NMMA) senior vice president of government and legal affairs, Nicole Vasilaros.
The NMMA’s lead lobbyist further explained that while most of the details, including when the remaining tariffs will be removed, remain undisclosed.
“We are disappointed that the administration has kept in place the 25% tariff on approximately US$250bn worth of products. This deal is not the finish line, and the recreational boating industry will celebrate only after all tariffs on more than 400 commonly used marine items are lifted. It is vital that the administration capitalises on this first step and strikes a comprehensive agreement that eliminates tariffs and puts American businesses and workers on a level playing field,” she said in a statement from the association.
“Phase one” cuts in half the 15% tariff on List 4A that includes floating docks, fishing equipment, wake equipment and other water sport equipment that took effect in September, but details no timeline for the reduction
The List 4B, 15% tariff scheduled to go into effect on 15 December has been cancelled. The products on this list included life jackets, personal flotation devices, and some fishing gear and tackle.
The main 25% tariff on US$250bn of Chinese imports on lists 1-3; including anchors, antenna receivers, boats, fiberglass, fish finders, fuel injection pumps, propellers, rope, seats, trailer tires, and miscellaneous plastic metal and rubber parts for boat equipment, remain in effect.