Trump’s Trade War: Part Two

trump-trade-war-part-two

NOTE: This blog is an update to our previous post from April 9: Trump’s Tariff War: What’s going on?

On Friday, June 15, 2018, the U.S. Trade Representative (USTR) finalized a first-round of additional tariffs on specific Chinese goods. These new tariffs announced Friday are in addition to the tariffs implemented by the U.S. earlier this year on steel and aluminum imports from China, but also on steel and aluminum imports from Canada, the European Union and Mexico.

In the USTR’s announcement, they indicate that the tariffs (to become effective on July 6, 2018) were the result of an “extensive interagency analysis and a thorough examination of comments and testimony from interested parties.” These tariffs focus on “products form industrial sectors that contribute to or benefit from the ‘Made in China 2025’ industrial policy, which includes industries such as aerospace, information and communication technology, robotics, industrial machinery, new materials and automobiles.” The tariffs do not include “goods commonly purchased by American consumers such as cellular telephones or televisions.” It is worth noting that the original proposal (from August 6, 2018) included 1,333 tariff line items and the first round noted below covers 818 tariff line items and an additional list of 284 items are under consideration.

While additional duties will be assessed beginning on July 6, 2018 on these items, the USTR acknowledges that U.S. companies may have “interest in importing items from China that are covered by the additional duties” and the “USTR will soon provide an opportunity for the public to request the exclusion of particular products from the additional duties subject to this action.”

What we know:

Current: Steel imported from China, the EU, Canada and Mexico is subject to a 25-percent additional tariff. Aluminum imported from China, the EU, Canada and Mexico is subject to a 10-percent additional tariff.

Effective July 6, 2018: An additional 25-percent tariff will be implemented on imports of more than 818 tariff line items. Per the USTR, these tariff line items total $34 billion worth of goods imported from China.

Stay tuned:

There is also a second set of 284 tariff line items that have been identified for additional review. These line items total $16 billion worth of goods imported from China. You can expect to see a Federal Register soon that will provide details regarding how to request exclusions from these additional duties.

Furthermore, we can also expect to see retaliatory tariffs from U.S. trading partners around the globe. Export Solutions will post another blog update on this in the near future.

If you would like some assistance in determining if your imports are subject to any of these additional tariff increases, or help requesting exclusions, please schedule a No-Charge Consultation with our team of trade compliance experts today.

Rebecca Yeager is a Trade Compliance Consultant for Export Solutions -- a full-service consulting firm that specializes in helping companies comply with U.S. and international import/export regulations.