In light of President Trump’s decision to increase tariffs on the $200 billion list of Chinese imports, China has decided to raise tariffs on $60 billion worth of U.S. goods. These retaliatory tariffs affect approximately 5,000 products and the total duty ranges from 20-25% depending on the commodity.
The Chinese retaliatory tariffs went into effect June 1, 2019, targeting a wide range of U.S. products including fruit, vegetables, beef, and coffee, among other things. China has indicated that it increased tariffs on the $60 billion list because the U.S. government’s actions were “contrary to the consensus between China and the United States on resolving trade differences through consultations.” The U.S. and China intend to meet at the G20 Summit later this month to continue trade negotiations.
If a deal cannot be reached, President Trump has made it clear that he intends to increase tariffs to 25% on almost all products imported from China which do not currently fall under any China 301 duty lists. This “4th List” will include approximately $300 billion worth of Chinese imports and contains products such as electronics, telecommunication devices, books, artwork, jewelry, footwear, and household goods. The proposed 25% tariff would be in addition to any tariff that is currently on the specific product.
For reference, the USTR has announced a notice and comment period for the proposed List 4. Here are some of the important dates to keep in mind regarding comment process if your company would like to be involved:
- June 10, 2019: Due date for filing requests to appear and a summary of expected testimony at the public hearing.
- June 17, 2019: Due date for submission of written comments.
- June 17, 2019: The Section 301 Committee will convene a public hearing in the main hearing room of the U.S. International Trade Commission, 500 E. Street S.W. Washington D.C. 20436 that begins at 9:30 a.m.