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Tariff Insider: September 13, 2019


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October Tariff Increases Delayed; Trade Talks to Resume

In light of the recent tit-for-tat game of tariff announcements and increases, the simmering trade war between the United States and China cooled this week following a series of tweets from President Trump.

On Wednesday, President Trump posted to social media that the 30% tariff affecting List 1, 2, and 3 goods — set to take effect on October 1 — would be delayed to October 15 as a gesture of goodwill toward China. This year marks the 70th anniversary of the People’s Republic of China and the week of October 1, known as Golden Week, is a national holiday across the country. President Trump wrote that moving the tariff deadline came at the request of Vice Premier of China, Liu He, to avoid any interference with the country’s celebrations.

With negotiations between the United States and China set to resume in early October, this delay may give both parties time to come to an agreement and avoid the tariff increases altogether.

A Note from Our Lead Customs and Trade Advisor

The latest tariff news from President Trump likely has many American businesses breathing a little easier. According to Flexport Vice President of Customs and Trade Advisory, Tom Gould, this announcement may also have a significant impact in terms of cost savings — to the tune of 5% for 15 days on Lists 1, 2, and 3 goods.

As with the September 1 tariff implementation, the new October 15 deadline will likely see freight forwarders adjusting air shipments to accommodate last-minute imports ahead of rising rates. Flexport’s airfreight service provided one such service prior to September 1, rescheduling the arrival of a HKG-ORD flight this past weekend to land at 23:45 on Aug. 31, saving customers time and money.

“The unpredictable nature of the trade war puts a premium on a freight forwarder’s agility and ability to develop flexible solutions to best serve customers,” explains Gould. “As circumstances surrounding upcoming tariffs continue to change, forwarders must be willing to go above and beyond to serve their clients as the situation evolves and hopefully reaches a resolution.”

We will be tracking the situation as it evolves. Stay tuned for more details as they emerge.

Download the latest Flexport piece, The Agile Supply Chain: Leveraging Airfreight Strategically, to learn how airfreight can deliver key supply chain advantages.

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