After weeks of industry worry and weeks of testimony against the placement of additional duties on $300 billion worth of China-produced merchandise — including footwear — imported in the U.S., the Trump Administration agreed Saturday to delay any action and continue negotiations with the country’s largest trading partner. At the G-20 Summit in Osaka, Japan, China responded to the trade truce and likely ongoing negotiations with U.S. Trade Representative Robert Lighthizer by stressing, “negotiations should be equal and show mutual respect.”
For the immediate future, U.S. retailers will not have any tariff reasons to raise prices on the China-imported merchandise they sell. Wall Street should react favorably to this news given consumers won’t be smacked with higher prices for key items during the crucial Back-To-School and Holiday seasons. The key issues of how China’s policies on intellectual property and foreign competition still need to be hammered out before any final trade deal between the countries is struck.