On February 25, 2019 President Donald Trump tweeted that trade negotiations between the U.S. and China are “in advanced stages” and he has therefore agreed to delay an additional tariff hike on China. This extension comes as the 90-day deadline President Trump gave negotiators was approaching, and U.S. tariffs on imported Chinese goods were set to increase from 10% to 25% on March 2, 2019. An extension is welcome in the business community, as an additional 15% increase would be a big hit to businesses that import products from China.
In a subsequent tweet, President Trump went on to say that if talks continue to progress, “we will be planning a Summit for President Xi and myself, at Mar-a-Lago, to conclude an agreement.” Negotiations between the two nations are ongoing, and there is much to be decided before a final deal is reached. Prior to any conference at President Trump’s resort at Mar-a-Lago, U.S. negotiators are expected to make an additional trip to Beijing and continue working on an agreement. The Trump Administration has made negotiating a new trade deal with China a top priority, and it will be important to monitor these negotiations in the coming weeks.
China is an important market for workforce mobility, and its relationship with the U.S. has a direct impact on the decisions of companies as they consider where to operate and locate facilities and offices. The ongoing uncertainty over tariffs is prompting companies to rethink whether to base substantial segments of their business in one location. We are, therefore, likely to see shifts in business practices, immigration policies and, ultimately, workforce mobility as a result of the negotiations on trade and tariffs.