President Trump Announces Phase One Deal with China, Suspends Tariff Increase
President Trump also announced he would suspend the tariff increase of 25 to 30 percent on more than 7,000 Chinese goods that was slated to take effect October 15. The President, however, stated he was undecided about implementing another round of tariffs on $125 billion of mostly consumer goods from China set to take effect on December 15. If the Phase I deal is not signed next month, those deals likely will still go into place. The agreement falls short of the grand bargain that PMA, through its One Voice advocacy partnership with NTMA, has long called for but does begin to address Intellectual Property theft, though not forced technology transfer or state subsidies by China.
Conflicting reports have emerged over whether the United States will lift its designation of China as an illegal currency manipulator, an action taken over the summer and supported by One Voice. Sources indicate the Chinese politburo is less enthusiastic about the deal and not fully committed to the structural changes long sought by manufacturers. One Voice will continue to work with government negotiators to address the structural changes necessary in China to level the manufacturing playing field.