Per yesterday’s Flash, officials from the U.S. and China reached a tentative trade deal, just days before Section 301 List 4B tariffs were scheduled to begin on December 15th.

President Trump has now confirmed the terms of “Phase One” of the U.S. – China Pact:

  • U.S. will not impose a 15% tariff on $160 billion of List 4B products that were set to take effect on December 15th.
  • U.S. will reduce the 15% tariffs on $120 billion of List 4A products that took effect on September 1st to 7.5%.

In exchange, China will increase its purchase of U.S. agricultural, energy and manufactured products, and improve intellectual property regulations and access for foreign investors.

At this time, the additional 25% tariff will continue to be levied on List 1, 2 and 3 Chinese products. However, President Trump announced that negotiations to start the next phase of the deal will begin immediately.

Shapiro will also continue to monitor and provide status updates on our Section 301 Tariff News page as they become available.