September 25, 2018 U.S. / China Trade War Update

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September 25, 2018 U.S. / China Trade War Update



September 25, 2018 U.S. / China Trade War Update

Sorry to use this headline but it is what it is and there is no longer any need to parse words.

The latest tariffs of 10% on List 3 items went into effect yesterday covering 5,745 tariff items we import from China (down from the proposed 6,031 items). The total amount of Chinese goods now subject to additional tariffs is about $250 billion worth of products which covers a wide variety of goods.

As expected the Chinese imposed 5 to 10% tariffs on another $60 billion worth of U.S. exports to China in retaliation for the latest moves by the U.S. The parties have been in discussion to address the core issues which precipitated these events but no progress has been made toward achieving U.S. objectives. The Administration has expressed its intention to further retaliate if China responded as they have by effectively expanding new tariffs to all Chinese imports. Chinese negotiators have also cancelled an upcoming with Trump administration trade officials. We will see.

No information on how to request exclusions has been published for List 3. However, the USTR has published instructions for List 2 exclusion requests which are due by December 18, 2018. Also, the Exclusion requests for List 1 are due by October 9 which is fast approaching.

Each request must include the following information.

  • identification of the product in terms of the physical characteristics that distinguish it from other products within the covered eight-digit HTSUS subheading (requests that identify the product in terms of the identity of the producer, importer, or ultimate consumer; actual or chief use; or trademarks or trade names will not be considered)

  • applicable ten-digit HTSUS number

  • annual quantity and value of Chinese-origin product the requester purchased in each of the last three years

In addition, each request should address the following factors.

  • whether the product is available only from China and whether a comparable product is available from sources in the U.S. and/or third countries

  • whether the additional tariff on the product would cause severe economic harm to the requester or other U.S. interests

  • whether the product is strategically important or related to “Made in China 2025” or other Chinese industrial programs

Importers should be checking all three lists to be aware of the impacts on any products or materials being imported from China. Please let us know if we can be of assistance in this area and be assured of our continued efforts to keep you informed.