May 6, 2019
A reminder that on April 17, 2019, U.S. President Trump announced, via social media, his intent to increase Section 301 tariffs on Chinese imports currently being assessed 10% Section 301 duties. The new tariff rate would be 25%. Subject to clarification from the U.S. Trade Representative (USTR), this immediate increase to 25% from 10% would presumably impact those Chinese products previously identified in the USTR ‘List 3’ already targeted with Section 301 tariffs. List 3 represents $200 billion in annual U.S. imports from China.
The President stated that the effective date for the increase of Section 301 tariffs from 10% to 25% will be Friday, May 10, 2019. It is expected the new tariff rate will be assessed on applicable imports entered through U.S. Customs on or after this date.
The President also stated his further intent to assess 25% tariffs on an additional $325 billion worth of Chinese imports not yet subject to Section 301 action.
This updated U.S. policy seems to reflect the President’s concern with the progress of ongoing trade negotiations with China. Media reports suggest the Chinese government is considering cancelling trade talks with the U.S. scheduled for this week.
Delmar International will continue to monitor U.S. Section 301 trade developments and provide updated information as it is made available.
Please contact your local Delmar Representative or email our U.S. Customs Advisory Services Group for additional information and assistance.