Tariffs on Recovered Fiber Imports Continue Despite U.S.-China Trade Deal

SEATTLE (Scrap Monster): The Chinese duty on imported OCC and other recovered fiber are likely to remain at 25%, despite the trade deal reached between the U.S. and China last week.

Earlier on January 15, 2020, the two countries had signed a phase-one trade agreement, outlining the obligations that both the countries need to fulfil. As per the deal, China had committed to significantly increase imports of U.S. goods into the country. The deal was further to the tentative deal signed between the countries, which had resulted in halt in tariff hikes.

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According to U.S. Trade Representative’s office, the deal calls for establishment of a strong dispute resolution system. This will bring down the tit-for-tat tariff wars between the two countries. However, the deal does not imply abolition of all U.S. tariffs and the retaliatory tariffs imposed by the Chinese administration. Consequently, it leaves the Chinese tariffs on OCC and other recovered fiber imports from the U.S. unchanged at 25%. Also, recycled paper pulp will continue to face 20% duty.

The pending concerns are likely to be addressed in the phase-two deal. However, the Chinese Foreign Ministry declined to comment on progress towards it.