The U.S. Trade Representative (USTR) issued a press release announcing proposed tariffs of 25 percent that will affect 1,300 tariff lines of Chinese products. The proposed tariffs come as a result of a USTR-led investigation under Section 301 of the Trade Act of 1974 that found China is unfairly forcing U.S.-based investors to transfer technology and intellectual property.
Specifically, the docket states:
“the acts, policies, and practices of the Government of China related to technology transfer, intellectual property, and innovation covered in the investigation are unreasonable or discriminatory and burden or restrict U.S. commerce.”
Based on estimated annual trade value for 2018, approximately $50 billion worth of Chinese imports would be impacted. A full product list is available in the USTR press release; however, goods under these major chapter headings are included:
• chemicals (29)
• medicines (30)
• rubber, tires and conveyor belts (40)
• iron/non alloy steel (72)
• alloy steel (73)
• aluminum (76)
• machinery and mechanical appliances, including machines used in manufacturing textiles and apparel (84)
• electrical machinery, television image and sound recorders and reproducers (85)
• railway/tramway (86)
• motor vehicles (87)
• planes and helicopters (88)
• boats (89)
• glass and microscopes (90)
• guns (93)
Due to the administrative process, including a comment period, the tariffs would not likely take place before June. Written comments from the public are accepted through May 11th; the USTR prefers electronic submissions through the Federal eRulemaking Portal. Please refer to the press release or contact Deringer’s Compliance Department with questions.