December tariffs likely to be averted

As things currently stand, the US is due to extend its punitive tariffs to cover nearly all goods imported from China in two weeks’ time. But the Trump administration has appeared keen to avoid that happening almost since the president announced the December round of tariffs in August. China is the source of two-thirds of US imports of goods on this tariff list, which are mainly consumer products, and nearly half of global exports. As a result, US importers would find it far harder to find alternative suppliers than they did in response to earlier rounds of tariffs. So while a “Phase One” deal has yet to materialise, at the very least a delay to the planned implementation of the tariffs on 15th December is likely. Meanwhile, the relatively muted Chinese response to President Trump’s signing of the HK Human Rights and Democracy Act may be a sign that its leaders too are keen not to derail progress towards a deal.