US and China Plan Tariff Cuts on $60 Billion of Nonsensitive Goods
The US and China announced tariff-cut plans covering about $60 billion in total of nonsensitive goods, including toys, home goods and agricultural products, but the new rates have not yet taken effect.
What are the key facts?
- 1US and China plan tariff cuts covering about $60 billion in total of nonsensitive goods
- 2Plan covers toys, kitchenware and other home goods
- 3The news does not mean that all goods can already clear customs under the new rates
- 4Plans should be adjusted only after the formal announcement, effective date and HS code list are published
What happened?
According to Bloomberg, the US and China announced a tariff-cut plan covering about $30 billion in nonsensitive goods from each side, or about $60 billion in total. The plan covers toys, kitchenware and other home goods exported from China to the US, as well as US exports to China including agricultural products, coal and medical equipment. The arrangement currently represents a policy framework or proposed exemption and does not mean that all relevant goods can already clear customs under the new tariff rates. Cross-border ecommerce sellers of toys, kitchenware, home goods and other consumer products should continue to calculate costs based on the currently applicable customs codes, country of origin, import date and actual declaration rules. Sellers should not include the expected tariff reduction in full when setting prices in advance, nor should they adjust sourcing, quotations or inventory plans solely on the basis of this news. Such operating decisions will have a clearer basis only after the formal announcement, effective date and specific HS code list are published.
What does this mean for cross-border sellers?
Toys, kitchenware and home goods may be affected by future tariff reductions, but sellers cannot yet clear goods under the new rates or directly lower prices. Continue calculating costs based on current customs codes, country of origin, import date and actual declaration rules, and wait for the formal announcement, effective date and specific HS code list before adjusting operating plans.
What should sellers do now?
- 1For each toy, kitchenware and home-goods product, retain the currently applicable HS code, country of origin, import date and actual declaration rules, and record them in a tariff-estimation sheet; complete a traceable cost worksheet using current rates and do not apply expected reductions for now.HS duty estimate
- 2Create a “current tariff rate” version for listings and quotations covering nonsensitive goods exported from China to the US, and verify the purchase price, tariffs and landed cost item by item; produce a quotation list that does not assume tariff reductions for store-operations review.Profit calculator
- 3Create a policy-pending checklist for toys, kitchenware and other home goods, recording for each item whether the formal announcement, effective date and specific HS code list have appeared; freeze purchasing, quotation and inventory adjustments until all three pieces of information are available.