$200 Billion in Goods from China Hit with Higher Tariff; $267 Billion More Threatened
President Trump has announced that beginning Sept. 24 an additional ten percent tariff will be imposed on 5,745 tariff lines from China with an import value of approximately $200 billion. This tariff is scheduled to increase to 25 percent as of Jan. 1, 2019.
The president added that if China “takes retaliatory action against our farmers or other industries” he will initiate a process aimed at increasing tariffs on another $267 billion worth of goods from China. Beijing subsequently announced that as of Sept. 24 it will impose retaliatory tariff increases of five or ten percent on more than 5,000 types of U.S. goods with an import value of about $60 billion.
The full list of products affected by the Trump administration’s new ten percent tariff is available here. All but 11 of the listed subheadings are covered by the additional tariff in their entirety, while those 11 are only “partially covered.”
In addition, this final list reflects the full or partial removal of 297 subheadings from the proposed list. According to the Office of the U.S. Trade Representative, these include consumer electronics products such as smart watches and Bluetooth devices; chemical inputs for manufactured goods, textiles, and agriculture; health and safety products such as bicycle helmets; and child safety furniture such as car seats and playpens.
The additional 10 percent tariff will be the latest action in response to a Section 301 investigation determining that China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation are unreasonable and discriminatory. Previously the administration levied an additional 25 percent tariff on $34 billion worth of Chinese goods effective July 6 and another $16 billion worth as of Aug. 23.
(Click here for ST&R’s web page providing comprehensive information on all U.S. tariffs imposed under Section 301 and Section 232 as well as the retaliatory tariffs trading partners are levying on U.S. goods.)
If your products are affected by the forthcoming tariff increase, please contact Nicole Bivens Collinson at (202) 730-4956 or Kristen Smith at (202) 730-4965 to review the list of covered goods and discuss options, alternatives, and actions that might be pursued to protect your interests.