On Friday, the Trump Administration announced a list of 818 Chinese products (down from the 1,300 tariff lines originally published) that will be subject to an additional 25 percent tariff effective July 6. A list of an additional 284 Chinese goods, not previously published, are also up for 25 percent duty treatment following a public notice and comment period. A Section 301 investigation was the impetus for these tariffs after it found China’s technology transfer, intellectual property, and innovation policies and practices were unreasonable and discriminatory. In response, the Chinese government imposed its own tariffs on American products, including soybeans, electric vehicles, some hybrid electric vehicles, and a variety of seafood and pork. An additional list of US goods subject to Chinese tariffs is expected.
The first list of 818 imported products is from a variety of sectors. These goods fall under Chapters 84-85, 87-88, and 90 covering engines and motors; construction, drilling, and agricultural machinery; machines for working minerals, glass, rubber, or plastic; rail locomotives and rolling stock; motor vehicles and motorcycles; helicopters and airplanes; and testing, measuring, and diagnostic instruments and devices.
The new list represents additional goods under Chapters 84, 85, 97, and 90, as well as various tariff lines under Chapters 27, 34, 38-39, 70, 73, 76, and 89. Some of the impacted goods are plastics and plastic products; industrial machinery; machinery for working stone, ceramics, concrete, wood, hard rubber or plastic, and glass; cargo containers; tractors; and optical fibers.
China has promised quick retaliatory action following the announcement, but President Trump has asserted that tariffs will be imposed on additional Chinese products if there is retaliation for the Section 301 measures.
Customers with goods imported from or exported to China should review the list of products and determine if they may be affected. If you have questions regarding your products, please contact Deringer’s Compliance Department.