U.S. – China Trade Deal Talks to Resume August 2020

update 8/15/2020

The trade talks have been postponed indefinitely. Rumors indicate a scheduling conflict according to Aljazeera.com.

United States and Chinese officials plan to meet on August 15, 2020 to discuss bi-lateral trade and ensure compliance within the U.S.-China Phase-One Trade Deal, which was officially signed on January 15, 2020. In the original deal, China promised it would buy more energy, agricultural products including wheat, corn and rice, among other manufactured goods, from the United States over the next two years with a value of $200 billion USD. China also made new promises not to manipulate its currency, protect foreign intellectual property, and refrain from forcing foreign companies to transfer technology. To read an overview of the deal in better detail, click here.

The United States plans to take a more aggressive approach to changing China’s “Made in 2025” strategy. According to the Wall Street Journal, “Relations have deteriorated in recent months, with the Trump Administration hammering Beijing over the coronavirus outbreak, Hong Kong and the treatment of Uighurs in Western China.”

U.S. Trade Representative, Robert Lighthizer, and Chinese Vice Premier Liu will likely discuss matters over videoconference.

U.S. Concerns

Not only has China fallen incredibly short on its promise to purchase more U.S. products, purchasing only about 47% of its to-date target, but other concerns have also come to the table. United States officials are concerned about human rights in China and have challenged those concerns through, for example, new regulations pertaining to origin manufacturing facilities and forced labor conditions. Sandler, Travis and Rosenberg reports, “DHS said it will take increased enforcement action against businesses in the U.S. that violate the law by contributing to human rights abuses in Xinjiang and elsewhere in China. This may include withhold release orders detaining imported goods, civil or criminal investigations, and export controls. In addition, U.S. Customs and Border Protection will continue to issue prohibitions on imports from China of goods produced with forced labor and DHS’ Homeland Security Investigations will continue to actively investigate companies and corporate officials who knowingly benefit from forced labor in Xinjiang.”

U.S. officials are also concerned about intellectual property theft, which has led to the shut down of the Chinese Consulate in Houston, for example, among other actions taken including additional taxes on imports from China through Section 301(b) of the Trade Act of 1974.

Section 301 Tariffs

The Section 301 tariffs make it harder for Chinese companies to enter the U.S. market, especially products that could possibly be made with United States origin. The Section 301 tariffs are definitely one of the biggest decisions that have negatively affected U.S. importers. However, importers are still able to avoid some ad valorem tariffs if a product exclusion has been granted. The USTR provides a helpful “Tariff Search Tool” to see if your product is included on any of the Section 301 additional duty lists or product exclusion lists. An importer may qualify for refunds paid on additional duties by issuing a post summary correction to any entries already submitted between the publish date and expiration date, or if the time lapses for filing a post summary correction, then an importer has 180 days from liquidation date to file a protest. Scarbrough can help! Email us now for a free consultation.

Has the “Trade War” Affected your Business?

If you are an importer affected by the U.S.-China Trade War, Scarbrough can help! Scarbrough Consulting, Inc. is offering a free 30-minute consultation. Our Global Trade Experts and Licensed U.S. Customs brokers are here to help, whether it’s duty drawback, product exclusions via post summary corrections or protests, or simply helping you to optimize your supply chain and add to your bottom line.  Please send an email to consulting@scarbrough-intl.com or fill out the form below. 

About Scarbrough

The Scarbrough Group of Companies, headquartered in Kansas City with local presence in every major port in the world, is a complete international and domestic supply chain service provider, offering U.S., Mexican, and Canadian Customs brokerage, Import & Export Transportation Solutions, Domestic brokerage and asset-based trucking, Warehouse fulfillment and distribution services, Trade Compliance Consulting, Large Equipment and Project Cargo moves, as well as Parcel Audit Savings.  Scarbrough is widely known for its trade experts, training, personalized customer service, customized solutions, and data analytics tools.  Since 1984, Scarbrough has continued to satisfy its clients by following its motto on a daily basis: “It is our job to make your job easier.”  Moreover, our team of experts is available at your disposal.  We offer free consultations on any topic from supply chain optimization and duty savings opportunities to the basics, helping to guide new importers and exporters as they jump into the world of global trade.  Contact us now.