No Reason for Panic - Making Sense of the Latest US-China Trade Developments From a Leading Importer

NORWALK, Conn., May 10, 2019 /PRNewswire/ -- With the swirling headlines, choppy stock markets and social media activity it can be difficult to make sense of what is going on in the US-China trade negotiations.  Here are the facts as of this morning, per Harlan Stone, CEO, of Halstead International, a leading importer for more than three decades of flooring products manufactured in China and one of the leading suppliers of luxury vinyl tile (LVT) to the US market:

• High level trade negotiations are expected to continue in Washington, DC today. 
• The goal of these discussions has never changed: to come to an agreement that allows for more open, fair and increased trade between the world's two largest economies.
• Negotiations require "clever tactics" and continuous "point-counter point" positions; this is exactly what has been happening since early 2018 and will continue until a final agreement is achieved.
• Imports of products from China on the so-called "List 3" (which included LVT and other consumer products) will continue to enter the USA today at a 10% additional tariff—the same as they did yesterday and the same as they will on Monday.
• The official Federal Register Notice published this week is very clear—only goods that were exported from China after midnight last night (US Eastern Standard Time) will be affected by any escalation of that tariff from 10% to 25%.
• The average transit by sea from China ports to US ports is 35 days (+/- 3 days). 
• This means there is a 5-6 week window for the negotiations to continue without any impact on US consumers, businesses or the overall economy. This is a good thing.
• Essentially all current "on water" shipments from China will be allowed to enter the USA at prevailing tariff rates, regardless of the arrival date.
• Twice previously, the escalation to a 25% tariff on the List 3 items has been avoided, and now for third time the action to raise the tariff rate to 25% has been delayed.
• These three points are important to remember:

1. Things are not always what they seem to be; 
2. Confusion can be considered a tactical advantage in certain situations; 
3. Staying focused on the facts can be good for a person's blood pressure. 

Mr. Stone is available to comment further on these issues.

SOURCE Halstead International