The United States Trade Representative (USTR) has announced the next steps in the process of imposing an additional tariff of 10 percent on approximately $300 billion of Chinese imports.
On May 17, 2019, USTR published a list (List 4) of products imported from China that would be potentially subject to an additional 10 percent tariff. This new tariff will go into effect on September 1, as announced by President Trump on August 1 (List 4A).
Certain products are being removed from the tariff list based on health, safety, national security and other factors and will not face additional tariffs of 10 percent.
As part of USTR’s public comment and hearing process, it was determined that the tariff should be delayed to December 15 for certain articles (List 4B). Products in this group include, for example, cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing.
After a thorough analysis of the two lists, the Michael Best Strategies Trade Team will be contacting each of our affected clients individually to discuss the status of their specific products.
Unlike the process utilized for List 3 when USTR imposed a 10 percent tariff and did not provide an exclusion process until the tariff was increased to 25 percent, USTR announced its intention today to conduct an exclusion process for these products subject to List 4’s 10 percent tariff.
The USTR will publish in the Federal Register as soon as possible additional details and lists of the tariff lines affected by this announcement.