US tariffs on US$200bn worth of imports from China are set to remain at 10% an official notice from the Office of the US Trade Representative has confirmed.

US President Donald Trump initially tweeted he would delay the increase to 25% which was scheduled to come into force last Friday (1 March).

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Now, the Office of the US Trade Representative has released an official notice confirming the move. The notice reads the USTR is postponing the date of the proposed increase to 25% and that the rate will remain at 10% with respect to products covered by the September 2018 action “until further notice”.

US and China officials met in Washington last week for a series of meetings to discuss the trade relationship between the two countries. The discussions followed talks in Beijing earlier this month where US officials met with their Chinese counterparts at the direction of President Donald Trump. 

The meetings are a part of an agreement between Trump and President Xi Jinping in Buenos Aires in December of last year to engage in 90 days of negotiations to try to avoid another increase in tariffs on US imports from China. China has also pledged to purchase a substantial amount of goods and services from the United States.

Scheduled for 1 March, the increase would see US tariffs on US$200bn worth of imports from China rise from 10% to 25%.

But in a two-part tweet on Sunday (24 February), President Trump said he is pleased to report that the US has made “substantial progress” in its trade talks with China and, as a result, he will be delaying the US increase in tariffs.

While he did not specify to what date the increase will be delayed until, Trump said that assuming both sides make additional progress, officials will be planning a Summit for himself and President Xi to conclude an agreement. 

The news was welcomed by US retailers who commended the Administration for its efforts to address “unfair trading practices”.

In a statement, the National Retail Federation (NRF) said the decision to avoid a tariff hike is a positive development.

“We encourage the administration to build on this momentum and reach a resolution that will eliminate uncertainty for American businesses and consumers. We look forward to continued progress and an agreement that will end tariffs and achieve a more fair and balanced trading relationship.”  

According to data released by Tariffs Hurt the Heartland – a campaign backed by NRF – recent tariffs imposed by the Administration cost US businesses US$2.7bn in November 2018 alone. 

Meanwhile, the Retail Industry Leaders Association (RILA) commended the delay, noting President Trump has made the “right decision” in a statement. 

“We commend the President’s decision to delay the tariff increase on thousands of everyday products that millions of American families want and need. These ongoing negotiations have been hanging over America’s retailers causing uncertainty throughout our supply chain,” said Hun Quach, vice president of international trade for RILA.  

“The President has made the right decision to delay the tariff increase on US$200bn worth of goods. We look forward to continuing our work with Congress and the Administration to quickly find a path forward that removes all tariffs on everyday consumer products.”