TAX SITUATION IN THE US

TAX SITUATION IN THE US 

The de-escalation of the trade war between the U.S. and China and the removal of most tariffs have immediately brought a breath of fresh air to the global economy amid concerns about the risk of recession. After negotiations in Switzerland on May 12, the U.S. and China agreed to postpone a portion of retaliatory tariffs for 90 days (effective from May 14 to August 11).

Specifically, the U.S. significantly reduced the overall import tariffs on goods from China from 145% to 30%. China also reduced its retaliatory tariffs on U.S. goods to 10% from 125%. This period has been established to facilitate broader trade negotiations aimed at finding a sustainable solution to current disputes. This is seen as a significant step back in bilateral trade tensions. Additionally, the U.S. reduced tariffs on Chinese postal items valued at $800 or less from 120% to 54%, while still maintaining the option of a fixed fee of $100 as an alternative. The planned increase of the fixed fee to $200, effective June 1, has been adjusted.

The latest information regarding retaliatory tariffs is as follows:

+ The 10% retaliatory tariff on the United Kingdom will take effect indefinitely, according to the trade agreement made last Thursday.

+ The 10% retaliatory tariff on all other U.S. trade partners will remain in effect until July 9 at 12:01 AM Eastern Time. After that, specific retaliatory tariffs by country will be applied.