Trade War Negotiations With China Restart

US and China Trade War Negotiation Updates

Recent China trade war tensions are raising risks of a freight recession despite market indicators of a late 2019 recovery.  However, the recent 2019 G20 Summit held in Osaka, Japan gave way to good news.  President Trump and Chinese President, Xi Jingping, agreed to restart trade talks.  There is no official timeline for the trade talks, showing a potential repeat in the succession of events from early 2019.  According to the vice president and senior analyst for ACT Research, Tim Denoyer, freight volumes will not rebound any time soon.

Additionally, President Trump recently suggested the U.S. may implement tariffs on Vietnamese goods.  The claim is that companies are re-labeling products to “Made in Vietnam” to avoid the 25% China tariffs.  The White House is using tariff threats as a prime negotiating strategy for the forseeable future.  The threats started with China, and branched out to Mexico, Vietnam, the E.U. and more.

Industry Response to the Trade War Tariffs

According to the president and CEO of Consumer Technology Association (CTA), Gary Shapiro, the China import tariffs are costing the U.S. tech industry an additional one billion dollars every month.  However, on a positive note following the G20 Summit, a suspension was placed on list 4 tariffs in addition to Trump and Xi Jinping agreeing to re-open trade talks.

Additionally, companies are finding ways to navigate the new trade war tariffs.  Walmart is investing $1.16 billion into a new facility in China to service nearly 25% of the country’s 443 store network.  The company is also making additional investments into same-day delivery and blockchain technology for full supply chain visibility and food safety.  Furthermore, Apple is making investments in India to eventually move up to 30% of their supply chain operations there.

The uncertainty for U.S. businesses is a constant in the trade war with China.  Apple, Walmart and other major companies are setting examples of how to move forward and navigate the new import/export tariffs.

Is your company being impacted by the trade war tariffs?  Reach out to one of our supply chain experts today for your personalized strategic business solutions.


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