President Trump announced June 29 following a meeting with Chinese President Xi Jinping that the U.S. will suspend plans to impose additional tariffs of up to 25 percent on so-called List 4 goods from China, which have a current import value of approximately $300 billion.
The U.S. and China have been negotiating an agreement aimed at resolving issues such as forced technology transfer, intellectual property rights, currency, and agriculture. Negotiations broke off in May after it seemed an agreement was close at hand, and both sides blamed the other for the collapse of the talks. The U.S. responded by increasing additional tariffs on List 3 goods (which have an import value of $200 billion) from 10 percent to 25 percent as of May 10 and launching a process to identify goods to include in List 4, which the president had also threatened to hit with additional tariffs of 25 percent.
However, Trump has now said that the U.S. “won’t be adding” tariffs on List 4 goods and instead will “work with China on where we left off, to see if we can make a deal.” He added that “for at least the time being, we’re not going to be lifting” tariffs on List 1, List 2, and List 3 goods from China.
At the same time, the process for seeking product-specific exclusions from the additional tariff on List 3 goods opened June 30 and will close Sept. 30. Companies that import goods on this list should seek exemptions, which, if granted, will be effective for one year and retroactive to Sept. 24, 2018, meaning refunds of tariffs already paid can be obtained.
Sandler, Travis & Rosenberg, P.A. has successfully filed exclusion petitions for companies with products on Lists 1 and 2 and can assist in filing under the new procedures for List 3. For more information, please contact your ST&R professional or Sandler, Travis & Rosenberg, P.A.
Copyright © 2021 Sandler, Travis & Rosenberg, P.A.; WorldTrade Interactive, Inc. All rights reserved.