The US is to delay imposing further trade tariffs on Chinese goods following what President Trump called “very good” meetings in which “substantial progress” was made.
A rise in import duties on Chinese goods from ten per cent to 25 per cent was due to come into effect on March 1st. It was earmarked as a point of major concern by many in the toy industry, particularly companies directly affected in the US.
Toy Association president and CEO, Steve Pasierb told ToyNews in a recent interview that tariffs were among the three biggest threats to the US toy industry, while others have been very vocal about the crippling effect a rise to 25 per cent would take on small businesses in the industry.
Bob Grubba, founder and CEO of the US outfit, Choo Choo Shoes said that a tariff hike imposed on Chinese goods would ‘put us out of business.’
“It would put most of the companies in our industry out of business,” he told Xinhua. “Most of these companies have a profit margin in the range of 30 per cent. We call it gross profit. If we were to pay a 25 per cent tariff, it would only leave approximately five per cent left to pay rent, insurance and other bills. It’s not enough.”
The US toy industry had pinned hopes on an extension of the trade talks between the US and China before the imposition of a fourth round of tariffs. A delay like the President has now confirmed, was billed “as the best scenario at the moment,” by the TA’s Steve Pasierb.
Trump is now planning a summit with Chinese President Xi Jinping in Florida to cement the trade deal if more progress was made.
The decision to delay tariff increases on $200bn worth of Chinese goods has been seen as a sign that the two sides are making progress on settling what has so far been a damaging trade war.