Yesterday, President Trump announced via Twitter that he plans to impose a 10% tariff on approximately $300 billion worth of products from China (“List 4”) starting September 1, 2019. This escalation would be additional to the Section 301 tariffs already levied on $250 billion worth of Chinese goods.
“Our representatives have just returned from China where they had constructive talks having to do with a future Trade Deal. We thought we had a deal with China three months ago, but sadly, China decided to re-negotiate the deal prior to signing. More recently, China agreed to buy agricultural product from the U.S. in large quantities, but did not do so.
Additionally, my friend President Xi said that he would stop the sale of Fentanyl to the United States – this never happened, and many Americans continue to die!
Trade talks are continuing, and during the talks the U.S. will start, on September 1st, putting a small additional Tariff of 10% on the remaining 300 Billion Dollars of goods and products coming from China into our Country. This does not include the 250 Billion Dollars already Tariffed at 25%.
We look forward to continuing our positive dialogue with China on a comprehensive Trade Deal, and feel that the future between our two countries will be a very bright one!”
Bottom Line for Importers
The announcement raises questions about whether the administration plans to launch another exclusion process for the goods covered by List 4, seeing as this was not done in the case of List 3 until the tariff rate was hiked from 10% to 25%.
It also remains to be seen if the U.S. Trade Representative will be making changes to the proposed tariffs subsequent to the public comment process that wrapped up earlier this summer.