The handbag industry can breathe a temporary sigh of relief as U.S. President Donald Trump and China’s President Xi Jinping agreed on a 90-day truce in the trade war, shelving planned tariff increases in January.
In what was widely billed as a make or break meeting on the escalating trade war between the U.S. and China, the two leaders had dinner Saturday night at the end of the G20 leaders summit in Buenos Aires.
Despite strong rhetoric from President Trump in the days leading up to the meeting, the heads of the two superpowers made a deal that the U.S. government would put on hold its plans to increase levies on $200 billion worth of Chinese imports – many of which are consumer facing and include handbags. Duties were set to rise to 25 percent from 10 percent on Jan. 1.
The Trump administration warned, however, that if negotiations do not go well, tariffs will rise in March.
“Both parties agree that they will endeavor to have this transaction completed within the next 90 days. If at the end of this period of time, the parties are unable to reach an agreement, the 10 percent tariffs will be raised to 25 percent,” a White