China and the United States are continuing consultations on tariff reductions covering selected non-sensitive goods.

On September 10, a spokesperson for China’s Ministry of Commerce said that the Chinese and U.S. economic and trade teams were consulting on a framework for reciprocal tariff reductions covering US$30 billion in goods, with both sides working toward early implementation. In May, China disclosed that the two sides had agreed in principle to discuss reciprocal tariff reductions on an equivalent scale under the U.S.-China Board of Trade mechanism, with each side covering US$30 billion or more in goods. Products of mutual interest agreed upon by the two sides could qualify for most-favored-nation (MFN) tariff rates or even lower rates. China’s Ministry of Commerce confirmed on September 10 that consultations on the US$30 billion framework were continuing.

With the U.S. public-comment process now completed, attention across export-oriented sectors, including textiles and apparel, has shifted to which products will ultimately qualify for tariff reductions.

On June 2, the Office of the United States Trade Representative (USTR) launched a public comment process on the U.S.-China Board of Trade and a potential tariff-modification mechanism, seeking views on non-sensitive products that could benefit from tariff adjustments. Initial comments closed on July 10, followed by rebuttals and responses on July 27.

However, no final product list, tariff reduction rates or implementation timetable has yet been announced.

Based on information currently available, U.S. authorities have not formally designated textiles and apparel as a priority category for the proposed tariff reductions. The U.S. apparel and footwear industry has, however, actively participated in the policy consultation process.

On July 10, the American Apparel & Footwear Association (AAFA) submitted formal comments to USTR on the U.S.-China Board of Trade, underscoring the industry’s interest in potential tariff adjustments.

If relevant products are ultimately included in the reciprocal tariff-reduction arrangement, some of the additional tariff costs they face when entering the U.S. market could be reduced. Whether the applicable rates would fall to MFN levels, the extent of any reduction, and how different tariff measures would be adjusted or applied in combination will depend on the final implementation rules.

Source: CHINA TEXTILE LEADER Express