Trump's Extended Tariff Suspension Keeps Americans 'Stuck,' AAFA Says
The American Apparel and Footwear Association thanked the Trump administration's suspension of higher tariff rates on China, but said the measure only keeps American companies and consumers "stuck in the same holding pattern" since President Donald Trump's "Liberation Day" tariffs were announced.
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AAFA President and CEO Steve Lamar said in a press release that the association appreciates the administration’s "continued engagement" with China and the suspension of the higher tariff rate, which will "avert devastating consequences." However, he went on to say, the "constant cycle of deadline delays and vague deal terms" continues to "stifle innovation, strategic decision-making, and long-term growth."
Lamar urged the administration to "include a non-stacking provision" as it negotiates with China, "similar to agreements with Japan and the EU." He said that even with the pause, the 30% rate on "our largest trading partner is still untenably high."
In the Aug. 11 executive order, the White House announced the suspension of higher tariffs on China until November, while maintaining the current level of duties. The order said that the suspension will continue until 12:01 a.m. EST on Nov. 10, and that China "continues to take significant steps toward remedying non-reciprocal trade arrangements" and addressing the economic and national security concerns of the U.S.
In a fact sheet, the White House attributed the pause to "constructive" trade discussions with China, saying that "each round of negotiations" with China has "built on each other," which strengthens "economic cooperation" and the desire to "work toward fair and balanced trade with a key trading partner." Trump further emphasized his good relationship with China, saying “we’re getting along with China very well.”
The pause extends the application of 10% reciprocal tariffs under Harmonized Tariff Schedule subheading 9903.01.25 to China and suspends China’s higher country-specific tariff under subheading 9903.01.63 -- currently set at 34% but previously as high as 125% -- which now will remain in effect until 12:01 a.m. Nov. 10 (see 2508110066).
The White House also released an Aug. 11 joint statement with the Chinese government that stated that China will continue to suspend retaliatory tariffs of 24% against the U.S., while maintaining a 10% rate.
China said it will continue to suspend its addition of dozens of U.S. companies to the country’s unreliable entity list, according to an unofficial translation of an Aug. 12 notice from China’s Tariff Commission of the State Council.
In an interview with Bloomberg Television, Wendy Cutler, vice president of the Asia Society Policy Institute and a former negotiator in the Office of the U.S. Trade Representative, said that it is "extremely important that both sides have agreed to a tariff rollover." The pause will allow negotiators to "really put their energies and attention on the key outstanding issues" between the two countries, she said. "There's lots of issues on the agenda and not a lot of time to come up with negotiated solutions."
Cutler said that China "comes to this negotiation in a much stronger position" than it did during Trump's first term. She said that China will use its access to critical minerals to "basically try to achieve a more balanced deal with the United States and use it as leverage, if it doesn't like what the U.S. is offering to it."