On Thursday, August 1st, 2019, the U.S. Administration announced its intention to assess a new 10% tariff (duty) covering an additional $300 billion of Chinese imports effective September 1, 2019. It is not yet known if this September 1 date will be applied to the export date of goods, entry date of goods, or a combination of both. An update will be provided once this has been clarified.
It is expected the new tariff will be assessed against Chinese Section 301 List 4 products previously identified by the U.S. Trade Representative (USTR). List 4 includes essentially all remaining products of Chinese – origin not currently under a 25% Section 301 tariff – excluding some pharmaceutical materials and rare-earth minerals.
Presently, $250 billion of Chinese imports into the U.S. are subject to a 25% Section 301 tariff. The USTR has previously provided limited retroactive tariff exemptions for specific Chinese products.
The U.S. Administration cited China’s continued lack of U.S. agricultural purchases and its ongoing exports of fentanyl as driving the government’s action. The administration also noted the new 10% tariff could be increased to 25% or beyond at a future date.
Trade talks between the two countries are currently scheduled for early September in Washington, D.C.
Updated Chinese Section 301 information will be provided as it is made available. Given the very wide range of products that will be covered by this tariff announcement, importers are encouraged to carefully review the specific impact to their import program.
Please contact your local Delmar representative or email our U.S. Customs Advisory Services Group for additional information and assistance.