On May 5th, President Trump indicated via Twitter that the third tranche of Chinese goods subject to Section 301 tariffs may increase from 10% to 25% on Friday, May 10th. The third tranche represents $200 billion of imported goods. Additionally, the President stated the remaining $325 billion worth of untaxed goods from China will incur a 25% duty in the near future. An official communication from the White House would be required to make this policy.
This week, a delegation from China is expected in Washington D.C. for additional trade discussions. Some news outlets have surmised that the President’s tweets about the tariff increases might be an attempt at gaining negotiating leverage.
Deringer will continue to report on the tariffs. Please contact our Compliance Department for guidance on ways to reduce your tariff exposure.