June 15, 2018
It is official. The Administration announced today the imposition of import tariffs at a rate of 25% on goods made in China. The new tariffs apply to 1102 different tariff line items and currently valued at approximately $50 billion.
According to the U.S. Trade Representative (USTR) the list of products was developed to focus on products from industrial sectors that contribute to or benefit from the ‘Made in China 2025’ industrial policy.” Products include aerospace, communications and technology products, robotics, industrial machinery and automobiles. Cellular telephone and televisions were not included on the list.
There are actually two lists of products affected. List 1 can be found https://mskllp.files.wordpress.com/2018/06/list-1.pdf and the 25% duty will become effective on July 6, 2018. These goods are said to be worth approximately $34 billion.
List 2 can be found https://mskllp.files.wordpress.com/2018/06/list-2.pdf with a value of approximately $16 billion. These products will undergo a further review and be subject to a public notice, a comment period and public hearings before a final determination on the products is made. Although no specifics have yet been announced there will apparently be a procedure for companies to seek exemptions for particular products. We are currently working on a program to compare list 1 and 2 with the product data basis we have for each import client. Please let us know if you would like to receive a report that highlights any of your products on the list(s). We will do our best to continue to keep you advised of more specifics surrounding these new tariffs. As previously mentioned it will be equally important to watch for retaliatory responses which will likely affect our exports to China. Please contact your John S. Connor representative if you have any questions and we will do our best to get you answers.