Blog: Tariff Waivers on US Products by China and the UK
International business has witnessed a lot of change in recent years. This blog analyzes the tariff waivers on US products by China and the UK.
CHANGES IN INTERNATIONAL BUSINESS
The ongoing trade war between the US and China has had a significant impact on global trade. Similarly, events such as Brexit have also altered the fabric of trade relations between the US and the UK. Nevertheless, despite these hurdles, there has been some progress in recent weeks. In May 2020, China announced new tariff waivers for some US imports. Similarly, the UK has also announced that a new tariff regime will be implemented post-Brexit. This blog analyzes the tariff waivers on US products by China and the UK.
TARIFF WAIVERS AND THEIR IMPACT
On May 12, China’s finance ministry announced that certain US products would not be subjected to tariffs from 19th May 2020 to 18th May 2021. The key products covered under this new tariff waiver include gold ores, silver ores, rare earth metals, and concentrates. These waivers have been determined on the basis of applications from US companies. This move is aimed at reducing the trade tensions between the two countries to an extent. The move came after high-level talks between the two countries’ trade negotiators. This move is likely to help exporters based in the US, as they will be able to export their products to Chinese consumers at lower costs.
Similarly, the UK has also announced a post-Brexit trade policy. This policy has been designed in such a manner that it eliminates tariffs on a range of US products. Nearly 6,000 tariff lines have been streamlined by the UK government as it aims to sign new trade agreements with partner countries around the world. It is estimated that nearly 60% of all items being imported into the UK will now be free of all tariffs. Although this move is aimed at streamlining structures and providing goods to the UK population at a lower cost, it will also benefit exporters that are based in the US.
HOPES OF FURTHER WAIVERS
In addition to the above, certain aspects of trade between the UK and the US are still being negotiated. The key areas of discussion include US farm products and environmental protections. The two governments continue to engage in talks, and favorable outcomes are expected sooner rather than later. This could benefit US exporters to a great extent. If the UK and US governments are able to sign a free trade deal, then it could reduce the trade barriers even further.
YOUR COMPANY’S NEXT STEPS
Thus, it becomes extremely important for US-based exporters to keep track of the latest regulations in order to ensure full compliance. They must be aware of all product categories that have been exempted from tariffs. Companies such as OCR Trade Management provide a range of specialized solutions that could potentially help US exporters in dealing with regulatory uncertainties. OCR offers global trade management software that can be used to track all imports and exports. For more information about the company and the key offerings, please contact us.