President Trump will allow some businesses to delay payment on certain trade tariff payments by three months, according to reports on Tuesday.
Trump is expected to announce the 90-day delay in tariff payments that has come amid the coronavirus pandemic in the near future, according to CNBC and Bloomberg.
Trump denied he’s going to defer the tariff payments for 90 days though, calling the reports “false reporting” during a White House coronavirus briefing on Tuesday evening.
Many businesses that import goods pushed for temporary relief from duty payments as the pandemic caused severe cash flow shortages.
It is not clear yet which payments would be included in the deferral, but sources told CNBC that the financial relief would likely apply to countries with “most favored nation” status under the World Trade Organization.
The most favored nation tariffs are imposed in a nondiscriminatory manner to countries exporting specific products to the United States such as apparel and footwear. Tariff duties on products such as baby garments, athletic shoes, and winter jackets can range from approximately 27% to more than 60%, according to the American Apparel and Footwear Association.
Thus far, Trump has repeatedly dismissed calls for tariff cuts on China and others, saying China, for example, hadn’t asked him to remove duties, even though a number of members of Congress, trade associations, and U.S. businesses have pressured him to approve the delay.
