China-U.S. Trade Continues to Erode Amid Heated Tariff Flinging

2024-02-26T18:51:07+00:00September 18th, 2018|Customs, Freight Market, Import, Industry Spotlight, Shipping News|

In a statement released by the White House on Monday, September 17, 2018, President Donald Trump announced,

“Today, following seven weeks of public notice, hearings, and extensive opportunities for comment, I directed the United States Trade Representative (USTR) to proceed with placing additional tariffs on roughly $200 billion of imports from China.  The tariffs will take effect on September 24, 2018, and be set at a level of 10 percent until the end of the year.  On January 1, the tariffs will rise to 25 percent.  Further, if China takes retaliatory action against our farmers or other industries, we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports.”

Click to read the full statement from the President.

Hours after the announcement, China responded, accusing the United States of inciting an ‘economic emergency’ and levying 5-10 percent penalties on a list of 5,207 U.S. products worth $60 billion, starting this Monday, September 24th.  In addition to targeting farm goods, Chinese penalties would place a 5 percent duty on small aircrafts, computers and textiles, and ten percent on meat, chemicals, wine, and wheat.

At present, roughly half of all Chinese imports into the U.S. are subject to the new duties and consumer goods will get the brunt of the action in the final wave.  If, as promised, the U.S. decides to pursue the third and final round of action, all Chinese imports would be impacted.

SECTION 301 – PHASE THREE PRODUCT LIST

Interested shippers may request exclusions from the Section 301 Second List tariffs– implemented on August 23, 2018 – must provide 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
  • ten-digit HTSUS number;
  • annual quantity & value of Chinese-origin product the requester purchased for each of the previous three years;
  • for imports sold as final products, the percentage of the requester’s total gross sales in 2017 that sales of the Chinese-origin product accounted for;
  • for imports used in the production of final products, the percentage of the total cost of producing the final product(s) the Chinese-origin input accounts for and the percentage of the requester’s total gross sales in 2017 that sales of the final product(s) accounted for;

The submission must also detail:

  • whether the product is available only from China and if 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

Exclusion requests must be submitted directly to the Office of the United States Trade Representative by the December 18, 2018 deadline.

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