The in-person meeting between President Trump and President Xi of China scheduled for the side-lines of the G20 Summit in Buenos Aires on November 20, 2018 is taking on heightened significance.
In a television interview yesterday, President Trump said that he has tariffs on the remaining $267 billion worth of Chinese imports into the United States “ready to go” if the two sides cannot reach a deal. He also said that, while he is confident that a deal could be made, he believes that “China is not ready”.
While anything can happen, it is wise to take such political rhetoric seriously (but not literally). Accordingly, all companies should prepare for the United States initiating the process for List 4 shortly after the November 20th meeting. Based on the timeline followed in the previous rounds, the List 4 additional duties could go into effect by late January/early February 2019.
We hope this is helpful. If you have any questions, or if you would like to discuss these issues further, please let us know.