U.S. and China Agree to Suspend Proposed Tariff Hike

Filed in Trade by on December 3, 2018 3 Comments

US and trade war conceptThis post was updated on Dec. 20.

In a positive development for the home building industry and housing affordability, the United States and China announced an agreement to suspend a proposed Jan. 1 tariff boost to 25% on $200 billion worth of Chinese imports — including including $10 billion of goods used by the home building industry — until March 2, 2019.

Earlier this year, President Trump imposed a 10% tariff on these goods, which represents a $1 billion tax increase on residential construction. This 10% tariff remains in effect while negotiations continue with China.

The agreement, brokered at the recent G-20 summit in Buenos Aires, suspends the proposed tariff increase until March 2, 2019 to allow the U.S. and China to continue trade negotiations while they work to resolve their differences. However, if an agreement is not reached within 90 days, the tariff on Chinese goods will jump from 10% to 25%, which would be equivalent to a $2.5 billion tax on housing.

NAHB has urged the administration to resolve this dispute quickly in a way that won’t hurt American consumers or businesses.

For more information, contact David Logan at 800-368-5242 x8448 or Alex Strong at x8279


Tags: ,

Comments (3)

Trackback URL | Comments RSS Feed

Sites That Link to this Post

  1. US and China negotiating tariffs - HMS Cornerstone | December 10, 2018
  1. Mark says:

    Good for us now. Not sure about the future.

  2. Were is the 1 billion dollars that was taxed on the housing sector?
    Lets use the collected money for low cost housing.

Leave a Reply

Your email address will not be published. Required fields are marked *