Equipment Manufacturers Encouraged by US-China Compromise on Tariffs

Agreement between the Trump administration and Chinese government delays further increases in tariffs as the governments work on trade deal

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While attending the G-20 summit in Argentina, the Trump administration and the Chinese government agreed to a temporary truce on their trade war, pledging to delay threatened tariffs for 90 days while they work toward a trade deal. The Trump administration had threatened to more than double the tariffs it has already slapped on $250 billion worth of Chinese import.

Association of Equipment Manufacturers (AEM) president Dennis Slater issued the following statement on the recently announced truce between the United States and China on tariffs: “We hope this builds momentum toward further reasonable agreements to reduce these taxes on Americans and better promote free trade. However, the decision also risks extending rather than ending the ongoing uncertainty supplied by the tariffs, creating an unpredictable business environment threatening many of our industry’s 1.3 million jobs."

Equipment manufacturing company executives have regularly spoken out in response to the Trump administration’s trade policies throughout 2018. With the tariffs on Chinese goods currently in place, the Trump Administration has imposed tariffs on about half of the total amount of goods imported into the U.S. from China last year. The agreement between President Trump and China president Xi Jinping does not remove these tariffs but delays a possible decision to extend and increase tariffs on additional goods imported into the U.S.

Acccording to the AEM, the ongoing trade war has hurt the profits of many equipment manufacturers, threatening many of the 1.3 million jobs the industry supports. The tariffs have also had negative impact on U.S. farmers and ranchers at a time when many are struggling due to a multi-year slump in income.

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