- Some $200 billion worth of Chinese goods being imported into the US will continue to pay 10% tariff starting January 1, 2019, as against the earlier government order of charging 25% tariff
- US and Chinese Presidents have mutually agreed to implement this measure at a G20 meeting in Buenos Aires
- It will remain in effect for a period of 90 days, and will extend in case the two countries are unable to reach an agreement at the end of the 90 days
- The imported goods in the list include PV inverters as well, which could mean a brief respite for the manufacturers
In what can be seen a brief relief to solar inverter makers in China, US President Donald Trump has decided to continue with a 10% tariff rate on Chinese imports worth $200 billion, even after January 1, 2019. Originally, Trump had planned to increase the 10% rate to 25% beginning of next year.
PV inverter companies that could benefit from such a measure are China’s Huawei and US based Enphase, although the latter is in the process of shifting its contracted OEM production from China to Mexico (see Enphase To Manufacture At Flex Fab In Mexico).
In September 2018, solar PV inverters being manufactured in China and imported into the US got embroiled in the trade conflict between the 2 countries, as Trump’s administration imposed 10% tariffs on some $200 billion worth of Chinese imports (see Trump Slaps Tariffs On Chinese PV Inverters).
At the G20 summit in Buenos Aires, Trump had a working dinner with President Xi Jinping of China, after which the measure was announced, although it has been postponed only for a 90-day period. If both the parties are unable to reach an agreement at the end of this period, the tariffs will be increased from 10% to 25%, read a statement from The White House.
“China will agree to purchase a not yet agreed upon, but very substantial, amount of agricultural, energy, industrial, and other product from the United States to reduce the trade imbalance between our two countries,” it further stated.