U.S. Penalty Tariffs Averted

img

The U.S. and China have agreed on a “Phase One” deal and averted U.S. penalty tariffs due to take effect on December 15.

China has agreed to buy $32 billion in additional agricultural goods over the next two years from a baseline of $24 billion purchased in 2017. China will also increase its purchase of manufactured goods and energy products. 

While the U.S. has agreed not to invoke the December 15 penalty tariffs, President Donald Trump said it would leave 25 percent tariffs on $250 billion of imports and cut tariffs on another $120 billion to 7.5 percent.

Meanwhile China says the world's two largest economies must deal with bilateral economic and trade relations with the big picture in mind. A report in China Daily says: “Implementation of the agreement will help enhance intellectual property rights protection, improve the business environment, expand market access, better safeguard the legitimate rights and interests of all companies including foreign firms in China, and protect the legitimate rights and interests of Chinese firms in their economic and trade activities with the United States.”

The Energy Trade

The U.S.-China trade war has impacted the American natural gas and oil industry through U.S. tariffs on imports of industrial components from China as well as Chinese retaliation on U.S. energy exports. 

“Although we are awaiting further details, we are encouraged by the progress made between the U.S. and China,” said Dr. Aaron Padilla, API senior advisor for international policy at the American Petroleum Institute (API). “The trade war has dragged on for far too long, limiting America’s energy potential and hurting U.S. consumers, farmers and manufacturers. De-escalation is a positive step forward, but we urge both countries to continue working toward a final agreement that completely lifts tariffs on both sides and fully restores U.S. energy export growth opportunities in China, one of our most important global export markets.” 

Padilla says te U.S. and China are a natural marketplace match when it comes to energy trade, with the growing U.S. natural gas and oil export capacity able to meet growing energy demand from China. However, since the beginning of the trade war in July of 2018, exports of U.S. natural gas, oil, and refined products to China began to rapidly decline due to retaliatory tariffs.

Ports Welcome Deal

U.S. West Coast port authorities have called repeatedly for an end to the trade war. 

“We’re hopeful that this is the beginning of the end to damaging trade restrictions,” said Port of Oakland Executive Director Danny Wan.  “It’s a good sign for our shipping customers, but let’s see how it plays out. There’ll be more work ahead to get global trade flowing freely again.”

The port is considered one of the principal gateways to Asia for U.S. agricultural goods. It reported record cargo volume in 2018, despite tariffs imposed by both China and the U.S. However, its total cargo volume through the first 11 months of 2019 is down 0.8 percent.

The National Retail Federation (NRF) has also welcomed the news. “For the first time in months, the United States and China are moving in the right direction on tariffs, and we congratulate negotiators from both sides for the progress they have made,” NRF Senior Vice President for Government Relations David French said. “Tariffs create uncertainty and costs for American retail supply chains, and the trade war won’t be over until they are eliminated completely. We agree that we need to realign our relationship with China, but tariffs that harm American businesses, workers and consumers are not the answer and cannot be allowed to continue.”

Member Testimonials

testimonial
X2 always thrives on raising the bar when it comes to connecting people. X2 conferences are one of a kind! As the founding member, we are happy to be in X2 Elite and the X2 Projects Network.
testimonial
"We believe in limiting memberships to a minimum and have found our home for projects as well as general cargo within the X2 family."
testimonial
I've been in the business for over 30 years, I have never had or experienced such and effort by the management team of the network to get members to participate and make their membership work for them.
testimonial
The professionalism and organisation shown from the X2 team totally blew us away.
testimonial
Richard is an innovator, what I find great working with him is that he can see the future.
testimonial
I was positively surprised from the amazing organization and specially the commitment of all X2 Team making this event incredible for everybody and in all complete fields.
testimonial
We have to skip the networks that are founded only for the benefits of the founders Quality and not quantity.
testimonial
We found the best way to build trust is to go to the conference and meet with people, talk to them and get to know them.
testimonial
As a new member of the X2 Network, we are very impressed by the organization and its professionalism and focus on mutual business development. X2 has already given us some great opportunities to work with likeminded partners across the globe on both project and general cargo.
testimonial
Great energy and drive throughout the X2 Team and high profile Network agents to complement each other’s business across the globe and help achieve positive results. Keep up the good work!
testimonial
X2 is like a family! We have met so many amazing partners. There has been so much success with the relationships we have developed throughout the years and most importantly friendships that will last a lifetime. And we love the networks' reach!
testimonial
We have been a member of X2 since 2014 and have attended six conferences. Richard and his passion for the network with his enthusiastic team have arranged all the conferences perfectly considering every single detail. We made many friends and found new global partners to work with at the conferences. X2 is one of the good solutions for our needs and we hereby thank them for their efforts.
testimonial
I have attended a lot of networks and annual meetings in the freight industry, but I have never come across a network like X2. This is another level. It is a pleasure to be a part of the X2 network - the professionalism, the attention to detail, the broad and knowledgeable staff - everything at the highest level.
testimonial
X2 is really an excellent logistics network, with a well-organized team that is always thoughtful and helpful. We are happy with X2 and expect a long journey together.
testimonial
"At X2 Network we found a group of partners that really want to build a long-term relationship. Companies are run by people that really care about your business and success. X2 Team has been really supportive and very active to develop new opportunities for your business''.

Our Partners

X2 Conference

Our special networking event is about smart freight forwarders coming together to grow and develop business within the group by providing an opportunity for all members to gather in one place to form and extend personal relationships.

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
7:53

NEW YORK

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
7:53

sao paulo

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
7:53

london

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
7:53

dubai

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
7:53

bangkok

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
7:53

hong kong

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
7:53

tokyo

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
7:53

sydney