Tariff Rate Increase Delayed
On Feb. 24, the president announced an indefinite delay to a scheduled increase—from 10 percent to 25 percent—in tariffs on $200 million worth of Chinese imports. On Feb. 27, U.S. Trade Representative Robert Lighthizer, the president’s top trade negotiator, signaled that—though progress is being made—there is still a great deal of work to be done before an agreement is reached with China. The U.S. is seeking concessions on intellectual property protection and other unfair trade practices of the Chinese government before any reduction or elimination of tariffs on imported goods is granted. For a full rundown of Trump administration trade actions and their impact on the construction industry, click here.
AGC welcomes the administration’s delay of an increase in the tariff rate on imported goods. Many of the items that have had duties accessed on them are materials incorporated into the actual construction project itself, necessary parts for manufacturing construction equipment, or the construction equipment itself. Costs for these various supplies, materials and equipment may rise accordingly, placing further pressure on contractors to increase their bid prices. AGC will continue to monitor this and other international trade negotiations.
For more information, contact Cory Gattie at firstname.lastname@example.org or (202) 547-4685.
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