Today, the National Electrical Manufacturers Association (NEMA) welcomed the decision by the President to delay planned tariff increases and to reduce some additional tariffs on Chinese products as part of an initial deal with China. NEMA will examine the announced tariff reductions and other portions of the U.S.-China "phase one" deal to understand fully the benefits for U.S. electroindustry manufacturers.
"The additional import tariffs planned for December 15 and administered in stages since July 2018 have affected materially how many NEMA Member companies operate and compete," said NEMA President and CEO Kevin Cosgriff. "We welcome the President's decision today and look forward to further normalization as the Administration and U.S. allies pursue additional enforceable commitments from China on core concerns, including intellectual property protection and technology transfer."
The President and Chinese officials in Beijing announced December 13, the contents of a trade agreement that includes a commitment from the U.S. to suspend plans to place 15 percent additional tariffs on Chinese products effective December 15. The President indicated that 15 percent tariffs implemented on some Chinese goods on September 1 of this year would be reduced to 7.5 percent. The 25 percent tariffs on $250 billion of Chinese goods targeted on three separate lists since 2018 will remain in place. The agreement includes commitments by China on intellectual property protection, financial services, currency and foreign exchange, and purchases of U.S. goods and services. No information was immediately available on when the agreement is to be signed.
The National Electrical Manufacturers Association (NEMA) represents nearly 325 electrical equipment and medical imaging manufacturers that make safe, reliable, and efficient products and systems. Our combined industries account for 370,000 American jobs in more than 6,100 facilities covering every state. These industries produce $124 billion in shipments and $42 billion in exports of electrical equipment and medical imaging technologies per year.