Additional Tariffs Announced

U.S. Trade Representative (USTR) has advised that the additional ten percent tariff on List 4 section 301 products announced earlier in the year has been increased to fifteen percent. The products covered by Annex A (List 4A) will be subject to the 15 percent tariff beginning September 1, 2019 whereas the products covered in Annex C (List 4B) will be subject to the tariff beginning December 15, 2019. No mention has been made by the USTR of exemptions to the five percent increase.

Per the USTR notice, the increase was at “the specific direction of the president.” The notice cites China’s reaction to the U.S. announcement of the initial 10 percent increase as playing a role in the decision to increase the additional tariff from ten to fifteen percent. Per the notice, efforts were not made by China to address the underlying problems regarding trade between the two countries; instead, China imposed a retaliatory tariff on U.S imports. According to the USTR website, the status of the Exclusion Process for the products subject to the tariff is still to be announced.