When we wrote our newsletter at the end of November, we assumed optimistically that the news which came out of the G20 dinner about relief from the increase would be immediately forthcoming. Two weeks later, we're thankfully getting the news we wanted to hear which is that, yes, the official announcement from the USTR is slated for publishing in the Federal Register tomorrow delaying the increase from 10% to 25% until March.
The announcement comes on the heels of the Chinese taking steps to reduce the punitive duty on American automobile exports and purchasing a quantity of soybeans for the first time in months. The duty hasn't been reduced on any other products going into China, so American fishing and farming interests are still waiting for their chance to get back into the market.
Will the ninety days deliver everything the Administration wants? Most likely not, but hopefully it sets both sides back on the path of having a productive discussion on fair, reciprocal trade.