While we wish that every month didn't seem to beat a drum about China and the current state of trade with the United States, we're approaching the final month of the year and a looming January 1st increase in duty for many products. The third annex published by the USTR, you'll remember, was 10% at the time it was implemented but will jump to 25% on January 1st.
by the USTR that China hasn't taken any steps to change their behavior leaves little doubt that given the track record of the administration, the new 25% figure is looming large for importers. Rumblings and threats about 10% on smartphones or just imposing duties on everything that remains from China have also been made.
All eyes will be turned towards Argentina this weekend, tomorrow specifically, when President Trump and Chinese President Xi are scheduled to have a working dinner.
US importers should be aware that the 25% increase is based on arrival and we anticipate that means a rush of air freight before the end of December and continued tightness in space for the next few weeks as goods which must arrive before December 31st are loaded aboard ships that begin their eastward transit.
We strongly encourage our clients to work with us and make us aware of goods that are trying to beat the clock - capacity constraints coupled with the end of the year and holidays will mean the earlier we can flag and monitor a shipment and its arrival, the better.