There have been some further developments since the announcement by the U.S. about staggering the recent tariff increases from September 1st and delaying a good portion of these new tariffs until December 15th.
An official USTR announcement is due out August 30th but it has been confirmed today these tariffs are expected to be elevated from 10% to 15% on approximately $300 billion worth of imports from China. The 5% increase was a response by the Administration to China's announcement that it would retaliate against the new U.S. 10% tariffs.
Product groups on the September 1st tariffs (List 4A) include some wearing apparel, TVs and monitors, some agricultural and livestock products and certain metals. The larger group (List 4B) to take effect on December 15th includes some apparel, phones, laptops and toys/games.
The U.S. has also announced a raising of tariffs on the earlier $250 billion worth of Chinese goods from 25% to 30% starting on October 1, 2019.
Interestingly, although China originally announced its intention to retaliate against the U.S. tariffs on List 4A and 4B products, a new report today indicated they have reconsidered and will not be retaliating at this time. The Chinese announcement indicated they were taking this step to prevent escalation of the trade war. This is a late breaking report and raises the question as to whether the U.S. will reconsider the jump in tariffs to 15% on the new list 4 goods and the increase from 25% to 30% as well. Tomorrow is a new day and we will see what happens. China did not rule out retaliating at some point in the future.
Meanwhile Customs and Border Protection, as well as service providers like us, are scrambling to work with IT programmers and train our staffs to ensure we will be ready when the changes take effect. These rapid fire changes and reversals sort of tie our hands but you can be assured we will be ready for whatever changes occur and do our best to keep you advised of further developments.