- President Trump signed into law the Miscellaneous Tariff Bill Act of 2018, which suspends or reduces tariffs on more than 1,600 items through the end of 2020.
- The products include chemicals, food products, sporting equipment and parts and tools used to produce finished goods. "We now have relief for our companies on products otherwise not made in America," Rep. Kevin Brady, R-Texas, who sponsored the bill, said in a statement.
- The law, however, does not roll back tariffs recently imposed on $50 billion worth of imports from China, ICIS news reported.
Reduced and suspended tariffs are not the news businesses have become accustomed to hearing in recent months.
U.S. manufacturers are applauding the signing of the bill. Many of the products they import in order to produce finished goods are not readily available for domestic purchase and diversifying sourcing is not always an option for highly specialized products, leaving manufacturers with almost no choice but to drive up prices.
"With his signature, President Trump has freed manufacturers and other businesses from a pointless $1 million a day tax," the National Association of Manufacturers wrote in a statement.
The suspension and reductions are temporary, however, and the tariffs in question are set to go back into effect at the start of 2021.
In addition, the Miscellaneous Tariff Bill Act does not reverse tariffs enacted in the last few months between the U.S. and China, nor does it stop the next round of tariffs on $200 billion worth of Chinese imports from taking effect.
Businesses have been anxiously awaiting Trump's announcement of the tariffs on $200 billion after the comment period ended September 6. Sources indicated to The Wall Street Journal that an announcement could come as early as today.
Nearly three-quarters of companies surveyed by AmCham China and AmCham Shanghai, non-profit organizations representing U.S. companies and individuals doing business in China, expect the next round of tariffs to negatively impact their business.