United States Trade Representative – July 10, 2018

Dear Valued Customer:

USTR Posts Proposed List of Chinese Goods Subject to 10% Tariffs

The United States Trade Representative (USTR) has released a proposed list of 6,031 tariff lines subject to an additional 10% tariff on $200 billion worth of Chinese goods. The Federal Register notice containing the list can be found here. This list is published in response to China’s implementation of retaliatory tariffs of 25% on 545 tariff lines that began on July 6, 2018, which was in response to Trump’s Section 301 tariffs, which also took effect on July 6.

Those who wish to testify for or against the inclusion of any item on the list must file by July 27. Written comments are due by August 17. Hearings will be head from August 20 – 23. A decision on the tariffs is expected to be made sometime after August 30.

The list takes into account impacts on consumers and some tariff lines had been removed because they were likely to cause disruptions to the U.S. economy, among other considerations.

The tariffs are being proposed because China has not acquiesced to U.S. demands after initial Section 301 tariffs had been applied. Trump previously said that China apparently has no intention of changing its unfair practices related to the acquisition of American intellectual property and technology and rather than altering those practices, it is now threatening U.S. companies, workers and farmers who have done nothing wrong.

Trump accused China of being determined to keep the U.S. at a permanent and unfair disadvantage, reflected in a massive and unacceptable $376 billion trade imbalance. He therefore concluded that further action must be taken to encourage China to change its unfair practices, open its market to U.S. goods, and accept a more balanced trade relationship with the U.S.

If you import goods from China, you may wish to review this list to see if any of your products may potentially be impacted so that you can plan future shipments accordingly.

James J. Boyle & Co. will continue to monitor these developments to keep our customers apprised.

 

Thank you for your attention and cooperation. If you have any questions, please contact your nearest JJB representative.

 

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