U.S. fastener importers and distributors got a reprieve from a looming tariff hike on Chinese fasteners.

The Section 301 tariffs of 10% on $200 billion worth of Chinese goods, including a majority of fasteners manufactured in China, were scheduled to increase to 25% on January 1, 2019.

But over the weekend, the leaders of the U.S. and China agreed to delay the rate hike for 90 days in hopes of providing time to find a solution to the trade war gripping the two largest economies in the world, Reuters reports.

“The White House said on Saturday that President Donald Trump told Chinese President Xi Jinping during high-stakes talks in Argentina that he would not boost tariffs on $200 billion of Chinese goods to 25 percent on Jan. 1 as previously announced,” Reuters reports.

“Beijing for its part agreed to buy an unspecified but ‘very substantial’ amount of agricultural, energy, industrial and other products, the White House said in a statement.”

If no deal is reached within 90 days, both parties agreed that the 10% tariffs will be raised to 25%, the White House said.

The Section 301 duty, imposed by President Trump on September 24, is the third round of Section 301 tariffs on Chinese goods. The president has said the tariffs are in response to China’s unfair trade practices. China immediately retaliated with a tariff on U.S. goods.

U.S. fastener importers and distributors responded to the Section 301 tariffs on Chinese fasteners by raising prices to cover replacement costs for products in their inventories.

As soon as the tariff took effect, Brighten-Best International, the largest importer of Chinese fasteners to the U.S., notified its customers of a 10% price increase.

Fasteners are listed among the 6,031 tariff codes affected by Section 301 tariffs. 

The Office of the U.S. Trade Representative (USTR) list includes:

7318.11.00 – Iron or steel, coach screws
7318.12.00 – Iron or steel, wood screws (o/than coach screws)
7318.13.00 – Iron or steel, screw hooks and screw rings
7318.14.10 – Iron or steel, self-tapping screws, w/shanks or threads less than 6 mm in diameter
7318.14.50 – Iron or steel, self-tapping screws, w/shanks or threads 6 mm or more in diameter
7318.15.20 – Iron or steel, bolts and bolts & their nuts or washers, imported in the same shipment
7318.15.40 – Iron or steel, machine screws (o/than cap screws), 9.5 mm or more in length and 3.2 mm in diameter
7318.15.50 – Iron or steel, threaded studs
7318.15.60 – Iron or steel, screws and bolts, nesoi, having shanks or threads less than 6 mm in diameter
7318.15.80 – Iron or steel, screws and bolts, nesoi, having shanks or threads 6 mm or more in diameter
7318.19.00 – Iron or steel, threaded articles similar to screws, bolts, nuts, coach screws & screw hooks, nesoi
7318.21.00 – Iron or steel, spring washers and other lock washers
7318.22.00 – Iron or steel, washers (o/than spring washers and other lock washers)
7318.23.00 – Iron or steel, rivets
7318.24.00 – Iron or steel, cotters and cotter pins
7318.29.00 – Iron or steel, nonthreaded articles similar to rivets, cotters, cotter pins, washers and spring washers