Dive Brief:
- The U.S. will delay a tariff increase originally set for Oct. 1 by two weeks "as a gesture of good will," President Donald Trump tweeted Wednesday.
- The U.S. Trade Representative announced plans last month to increase the existing 25% tariff on $250 billion worth of Chinese goods to a rate of 30% on Oct. 1. This is now delayed until Oct. 15, according to Trump.
- This announcement comes the same day as China's decision to exempt U.S. anti-cancer drugs and other goods from its planned tariff list, which Trump called a "big move," according to Reuters.
Dive Insight:
Trade talks are expected to continue in October with Chinese Vice Premier Liu He, U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin meeting in Washington, D.C., according to Reuters.
Less than three weeks ago, Trump announced plans to increase all tariffs, implemented and planned, on Chinese goods by five percentage points.
U.S. businesses are not placing too much faith in the trade talks, which have been going on for two years without a resolution. Businesses are instead turning to the same strategy they looked to at the end of 2018: Import goods as soon as possible to avoid the tariff increases.
"Retailers are still trying to minimize the impact of the trade war on consumers by bringing in as much merchandise as they can before each new round of tariffs takes effect and drives up prices," National Retail Federation Vice President for Supply Chain and Customs Policy Jonathan Gold said in a statement this week.
The U.S. paid $6.8 billion in tariffs in July, according to Tariffs Hurt the Heartland, a 62% year-over-year increase.
