After the G20 summit between Presidents Donald Trump and Xi Jing Ping held in Buenos Aires, Argentina on December 1st, it was announced that China Sanctions currently in place will remain in effect, however, there will not be any further sanctions imposed on Chinese products for the next 90 days. The duty increase from 10% to 25% for Chinese goods covered by List #3 which was scheduled to be implemented as of January 1st, 2019 will not occur on that date. If an agreement is not timely reached, List #3 will be subject to a 25% additional duty at a future date. For now and until further notice, Lists 1 and 2 remain at 25% and List 3 at 10%.
This temporary working agreement between the United States and China by no means is an indication that the trade war is over at this time.
The following information was issued by the White House regarding the status of the Chinese sanctions:
Statement from the Press Secretary Regarding the President’s Working Dinner with China
Issued on: December 1, 2018
The President of the United States, Donald J. Trump, and President Xi Jinping of China, have just concluded what both have said was a “highly successful meeting” between themselves and their most senior representatives in Buenos Aires, Argentina.
Very importantly, President Xi, in a wonderful humanitarian gesture, has agreed to designate Fentanyl as a Controlled Substance, meaning that people selling Fentanyl to the United States will be subject to China’s maximum penalty under the law.
On Trade, President Trump has agreed that on January 1, 2019, he will leave the tariffs on $200 billion worth of product at the 10% rate, and not raise it to 25% at this time. China will agree to purchase a not yet agreed upon, but very substantial, amount of agricultural, energy, industrial, and other product from the United States to reduce the trade imbalance between our two countries. China has agreed to start purchasing agricultural product from our farmers immediately.
President Trump and President Xi have agreed to immediately begin negotiations on structural changes with respect to forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft, services and agriculture. Both parties agree that they will endeavor to have this transaction completed within the next 90 days. If at the end of this period of time, the parties are unable to reach an agreement, the 10% tariffs will be raised to 25%.
It was also agreed that great progress has been made with respect to North Korea and that President Trump, together with President Xi, will strive, along with Chairman Kim Jong Un, to see a nuclear free Korean Peninsula. President Trump expressed his friendship and respect for Chairman Kim.
President Xi also stated that he is open to approving the previously unapproved Qualcomm-NXP deal should it again be presented to him.
President Trump stated: “This was an amazing and productive meeting with unlimited possibilities for both the United States and China. It is my great honor to be working with President Xi.”