US Prepares to Meet China at G20 Japan, List 4 Tariffs Published

2019-05-14T18:48:24+00:00May 14th, 2019|Customs, Export, Import, Industry Spotlight, Shipping News|

Just as shippers hoped the trade dispute between China and the United States was coming close to a deal, issues during the negotiations have re-ignited tensions culminating in new tariffs on both sides of the Pacific.

MAY 10, 25% DUTIES ON LIST 3

Last week, the Office of the U.S. Trade Representative (USTR) announced it will begin imposing increased tariffs of 25 percent on $200 billion worth of List 3 goods exported from China after May 10, 2019.  Because of language surrounding the order, shippers whose cargo left before May 10, entered before June 1, or goods previously admitted into a foreign trade zone with “privileged foreign status” will not be subject to the increased Section 301 duties. Also released was the fourth round of product exclusions from the initial $34 billion Section 301 action and will be retroactive from July 6, 2018.

MAY 13, FOURTH LIST FOR INDUSTRY COMMENT

On Monday, May 13th, the USTR escalated trade tensions by releasing a preliminary notice requesting comments from the industry on taking further action on a fourth list of goods from China totaling $300 billion for additional 25 percent duty.  The final installment of duties will target consumer goods and will heavily impact holiday shopping for Americans unless a deal is reached.

The Section 301 Committee is scheduled to convene a public hearing in the main room of the U.S. International Trade Commission, 500 E Street SW Washington, DC 20436, beginning at 9:30 a.m. on June 17, 2019.  The industry has been urged to submit comments and responses in accordance with the following schedule:

  • June 10, 2019: Due date for filing requests to appear and a summary of expected testimony at the public hearing.
  • June 17, 2019: Due date for submission of written comments.
  • June 17, 2019: The Section 301 Committee will convene a public hearing in the main hearing room of the U.S. International Trade Commission, 500 E Street SW Washington DC 20436 that begins at 9:30 a.m.
  • Seven days after the last day of the public hearing: Due date for submission of post-hearing rebuttal comments.

CHINA RETALIATION

In retaliation, China’s finance ministry announced on Monday that they, too, will proceed in raising tariffs on roughly $60 billion worth of American goods starting June 1, 2019.  The action will increase tariffs to 20-25 percent on 5,000 products that were previously targeted last fall at 10 percent duty.  China has separated targeting into four categories:

  • CATEGORY 1 (tariff increase from 10 to 25 percent): cotton, machinery, grains;
  • CATEGORY 2 (tariff increase from 10 to 20 percent): aircraft parts, optical instruments, & various types of furniture;
  • CATEGORY 3 (tariff increase from 5 to 10 percent): corn flour, wine;
  • CATEGORY 4 (tariff remains at 5 percent): certain types of chemicals, rare earth elements, medical equipment, such as ultrasound and MRI machines

Leaders of the two economic powerhouses, U.S. President Donald Trump and China’s President Xi Jinping will meet in Osaka, Japan on June 28-29 at the G-20 Summit to continue discussions in hope of a speedy resolution.

As Green continues to monitor the situation, stay up-to-date on freight news by following us on FacebookTwitter, and LinkedIn. For continuous updates, make sure to check out our website at greenworldwide.com.

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