It will bring enormous relief in both the United States as well as in China; this morning it was announced that the Trump Tariffs are to be phased-out. This is to put an end to the trade war between America and China as well as the heavily raised import duties on many bicycle products that are imported from China into the U.S. The greatly increased import tariffs, enforced by President Trump have, in addition to the EU anti-dumping measures, led to a large-scale production relocation of bicycles, e-bikes and parts.
The news that the trade war between the United States and China will (eventually) be brought to an end was announced today by the Chinese Ministry of Commerce. The two countries have agreed to phase-out the existing import duties.
Result of 'careful and constructive negotiations’
The spokesperson of the Chinese Ministry of Commerce stated this morning “This is what has been agreed after careful and constructive negotiations in the past two weeks.”
The withdrawal is dependent on the progress made with the conclusion of the trade agreement, the ministry added.
According to the Chinese ministry, if the first-phase deal with the US is signed, the levies will also be withdrawn, in line with the agreements made. But when and where this first-phase deal is to be signed is still unclear. However, the very clear statements made by the Chinese Ministry of Commerce point at least to the fact that there is progress in the negotiations between the two countries.
This news from China will be outright welcomed in the United States. And not in the least by the country’s cycling sector. Companies have been confronted in all kinds of areas with the negative consequences of the measures taken by President Trump that have led to (for many bicycle products) a five-fold increase in import tariffs. Dorel Industries Inc. for instance, the holding of subsidiaries like Cycling Sports Group, with brands including Cannondale, GT, Schwinn, Charge, Fabric, Guru, Mongoose, Caloi, IronHorse and Kid Trax, has been hit hard by the Trump Tariffs. Dorel suspended its dividend and said that third quarter results were harmed by increased U.S. tariffs on Chinese bikes, furniture and other goods Dorel sells.
Dorel’s president and CEO, Martin Schwartz, pointed to far-reaching consequences like shifts in demand due to changing price-points creating product mix imbalances; elevated warehousing costs as well as delayed Christmas 2019 deliveries.
Requests for exclusions of the Trump Tariffs for bike-related products have been applied on a wide-scale by the U.S. cycling sector. In particular as companies looking for alternative suppliers in for instance Taiwan, met with purchase costs that were 40 percent higher compared to suppliers in China.
The news that the trade-war between the U.S. and China will be brought to an end, was announced this morning by financial news agencies ABM FN and Dow Jones.
Artical Source: https://www.bike-eu.com/laws-regulations/nieuws/2019/11/trump-tariffs-to-be-phased-out-as-us-china-trade-war-is-to-end-10136875?vakmedianet-approve-cookies=1&_ga=2.199982638.1493688988.1574661321-325408835.1574661321