Since our last update on the ongoing trade negotiations between the US and China, there has been relatively little change. Tariffs of 10% on $250 billion worth of Chinese goods went into effect last fall, but have not applied to optical transceivers from Champion ONE. However, these tariffs did not escalate to 25% as initially planned. Instead, a truce at last December’s G20 summit opened another round of trade talks, and the proposed increase was placed on indefinite hold.
However, this past week, these renewed talks have stalled. As of May 8, the US Trade Representative has formally filed paperwork to increase these tariffs to 25% by Friday, May 10. More troublingly, there is increasing speculation that tariffs may expand to cover the $325 billion of goods that have been entirely unaffected to this point.
While there has been no formal plan issued by the US Trade Representative to expand tariffs, Champion ONE is closely monitoring the situation and is prepared to manage any potential outcome. Stay tuned to our blog, as we will continue to provide updates as the story develops.