The US will impose tariffs on a third list (i.e., tranche) of Chinese goods subject to Section 301 duty. A 10% duty rate will be applicable to 5,745 tariff lines of goods, valued at $200 billion, effective September 24, 2018. On January 1, 2019, this duty rate will increase to 25%. Approximately 300 tariff lines were removed from the original publication of this list.
The latest list follows two previous rounds of Section 301 duties applied since July 2018.
• A 25% duty took effect on July 6, 2018, for products found in list 1. This is in addition to any regular duty and/or antidumping and countervailing duties that presently exist for these products.
• The 25% duty on the second tranche of goods went into effect on August 23, 2018. This list was previously identified as proposed list 2.
The Section 301 duties are being imposed as a response to “China’s theft of American intellectual property and forced transfer of American technology.” Similar to its response to the first and second rounds of US-imposed tariffs, China has responded with retaliatory tariffs on $60 billion of US goods.
If you have questions regarding the duties, please contact our Compliance Department.