Additional Duty on $200 Billion from China
On September 17, 2018, President Trump announced the United States Trade Representative (USTR) will be proceeding with placing additional tariffs on roughly $200 billion of imports from China. The tariff will go into effect on September 24, 2018 and add 10% duty to the items on this list. The White House did remove about 300 goods from a previously proposed list of affected products, including smart watches, some chemicals, and other products such as bicycle helmets and high chairs.
On January 1, 2019 the tariffs will increase to 25 percent. Furthermore, if China takes retaliatory action against farmers or other industries in the U.S., the President is threatening to immediately place tariffs on approximately $267 billion of additional imports from China.
In a press release, President Trump states,
“We are taking this action today as a result of the Section 301 process that the USTR has been leading for more than 12 months. After a thorough study, the USTR concluded that China is engaged in numerous unfair policies and practices relating to United States technology and intellectual property – such as forcing United States companies to transfer technology to Chinese counterparts. These practices plainly constitute a grave threat to the long-term health and prosperity of the United States economy.
For months, we have urged China to change these unfair practices, and give fair and reciprocal treatment to American companies. We have been very clear about the type of changes that need to be made, and we have given China every opportunity to treat us more fairly. But, so far, China has been unwilling to change its practices. To counter China’s unfair practices, on June 15, I announced that the United States would impose tariffs of 25 percent on $50 billion worth of Chinese imports. China, however, still refuses to change its practices – and indeed recently imposed new tariffs in an effort to hurt the United States economy.”
Other Section 301 Tariffs
The additional 10 percent tariff will be the latest action in response to the Section 301 investigation mentioned above. Previously the administration levied an additional 25 percent tariff on $34 billion worth of Chinese goods effective July 6, 2018 and another $16 billion worth as of August 23, 2018.
Does your company qualify for duty drawback? Drawback is allowed on 301 tariffs paid, but not on Section 232 on steel or aluminum. If you want to learn more about this opportunity, email firstname.lastname@example.org or join us in a free webinar on January 16, 2019.View On-Demand Training