The US and China have declared a 90-day ceasefire in the US-China trade war following the meeting between President Trump and President Xi on the sidelines of the G20 in Argentina.
The truce, agreed on Friday (30 November) by US president Donald Trump and China’s president Xi Jinping, has been welcomed by US associations representing apparel and footwear brands and retailers.
The move allows talks to take place between the two sides. Had a deal not been struck, tariffs on US$200bn worth of Chinese goods would have risen from 10% to 25% at the start of 2019.
The trade war has seen the US and China hit each other with escalating tariffs and US industry groups have openly voiced their concerns about the impact on brands, importers and manufacturers, and consumers.
American Apparel & Footwear Association President and CEO Rick Helfenbein said the AAFA is “encouraged” by the news. “The resumption of talks between the US and China is encouraging for our industry, as we are dependent on complex global supply chains for our marketplaces around the world.
“While we are pleased that American consumers have been protected from additional tariffs on most of our products to date, this announced 90-day reprieve on increased and future tariffs is promising and we hope it will lead to the swift removal of the punitive tariffs already imposed by the administration. We will continue to emphasise to the administration the need to stop taxing American consumers to the detriment of our retail economy. In that light, we will be watching the negotiations closely.”
The National Retail Federation’s CEO Matthew Shay adds: “The administration’s decision to give diplomacy a chance and at least temporarily avoid the imposition of increased and additional tariffs is an encouraging sign.
“We hope this 90-day tariff pause will lead to a positive resolution that removes tariffs altogether and improves US-China trade relations.”