A recent report showed that China only purchased 57% of the $200 billion worth of U.S. goods Beijing committed to buy in 2020 and 2021 under a deal reached by the previous administration. Signed in January 2020, the Trump administration agreed to not apply additional tariffs on Chinese imports in exchange for the increased purchase of U.S. manufactured goods, agricultural products and American services.

Specific to manufacturing, China purchased 59% of its commitment over two years. COVID-19-related products, such as medical devices, exceeded their target by 134% as did semiconductor purchases by 129%. Those on the losing side of the Phase I agreement include autos, trucks and parts, which reached 39% of the commitment. U.S. aircraft and parts sales to China reached only 18% of the commitment, though much of that is related to challenges at Boeing.

The 25% and 7.5% tariffs on thousands of Chinese imports into the U.S. remain in effect, and the U.S. Trade Representative said the federal government needs more tools to enforce trade laws and hold Beijing accountable for their purchase commitments. Until they detail what steps they will take next, manufacturers should expect tariffs to remain and China to continue business as usual.