October 1st carries tremendous cultural significance in China, and this year the country is celebrating the 70th anniversary of the People’s Republic of China. Perhaps with an eye to this, plus in response to China’s awarding of the first exclusions to US products from their additional import duties, President Trump announced a delay from October 1st to October 15th in the planned increase of Section 301 duties on the items on lists 1, 2 and 3. Scheduled to increase by 5% from 25% to a planned 30%, the President announced his delay on Twitter on Thursday evening.
For US importers, this temporary stay should likely be seen as just that…temporary…until further, more concrete signs appear. Certainly China’s sixteen exclusions to which they added soybeans and pork (in response to a massive reduction in their pig population because of African Swine Flu) could come into play when US and Chinese negotiators sit down again next month in Washington.