Reprieve for industry as US and China restart trade talks
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Fishing tackle manufacturers across the US will be breathing a huge sigh of relief with the news this week that the US and China have agreed to resume trade talks after a seven-week breakdown.
The Trump administration has – for now – decided to postpone adding a new 25% tariff on $300 billion in imports from the Asian powerhouse, which would have included items of fishing tackle, apparel and footwear.
The news was announced following a meeting between US President Donald Trump and China President Xi Jinping during the annual summit meeting of the Group of 20 nations in Osaka, Japan.
“Basically, we agreed that we are going to continue the negotiation,” said Trump. “We are going to work with China on where we left off to see if we can make a deal.”
In exchange China has agreed to increase its purchase of agricultural products.
The temporary postponement of tariff increases does not end the trade dispute between the two parties as Trump has said that the 25% taxes currently imposed on $250 billion in Chinese goods will not be reduced. China has retaliated by taxing US exports, while at the same time reducing tariffs on competing products from other countries.
The Outdoor Industry Association (OIA) has revealed that companies and consumers paid an extra $1.1 billion due to new tariffs in the period from September 2018 to April 2019. “Tariffs on products vital to America’s outdoor recreation economy, which supports 7.6 million American jobs, are sapping the strength of one of our nation’s most important industries,” said Patricia Rojas-Ungar, Vice President of Government Affairs for the OIA.
“These are significant taxes on an industry that fuels economic growth and healthy communities across America. To date, these tariffs have caused so much unpredictability for outdoor companies that many have had to slow or cancel job-creating investments and have resulted in higher costs for businesses in every corner of the country.”