U.S. President Donald Trump and Chinese President Xi Jinping announced last weekend a “truce” in the ongoing trade war, with Trump agreeing not to raise tariffs from 10 percent to 25 percent on $200 billion worth of imports and Xi agreeing to lower tariffs on American car imports.
Although the announcement allays fears of a worsening conflict, the announcement is only a small respite for the recycling industry.
The primary announcement is that the United States will not increase the 10 percent tariffs on scrap commodities imported from China. Unfortunately, there were no pledges made by the Chinese leader to decrease or eliminate tariffs on scrap from the United States nor did the U.S. side agree to change tariffs on the first $50 billion worth of products, which includes auto shredder wear parts.
Furthermore, in statements by the U.S. Administration, China agreed to buy more from the United States, including industrial goods, but no details have been given, and we believe it be highly unlikely that scrap would be part of this given the Chinese Government’s previous strident statements about environmental protection.
The two sides also agreed to begin negotiations on “structural changes” to what the U.S. Government complains are China’s unfair trade and investment policies. In a statement, the U.S. Administration said that if no progress is made on these negotiations, the tariffs would be increased to 25 percent.
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