U.S. Increases Tariff Charges on $200 Billion of Chinese Goods

U.S. Increases Tariff Charges on $200 Billion of Chinese Goods

The United States government has increased existing tariff charges impacting goods worth $200 billion USD from 10 to 25 percent. The increase covers nearly 6,000 products named in the initial September 2018 tariff action against China, the third round of tariffs that were first imposed in June of that year. The new charges are effective as of May 10, 2019.

The increase was initially set for January 1, 2019 but was postponed until March 2, 2019 by order of U.S. President Donald Trump. In March 2019, the president ordered another postponement, this time indefinitely, as the U.S. and China conducted trade negotiations. The countries have met several times in 2019, but have yet to achieve a deal. According to the Office of the Federal Register, China backtracked on previous commitments agreed to earlier in 2019, resulting in the most recent increase to tariff charges.

Tariffs were first levied as the U.S. Trade Representative announced an investigation of the Chinese government’s acts, policies and practices related to technology transfer, intellectual property and innovation. The initial action resulted in tariffs on $34 billion USD worth of Chinese products with an additional $16 billion USD coming one month later in July 2018. China retaliated with tariffs on U.S. goods, which resulted in the U.S. expanding tariffs to the current $200 billion level.

Products have been classified by their Harmonized Tariff Schedule Search (HTSUS) subheadings set out in an Office of the U.S. Trade Representatives (USTR) Annex. The tariffs will impact many industries within the U.S. including:

  • Automotive
  • Agricultural
  • Construction
  • Electrical Device
  • Medical Device
  • Manufacturing
  • Transportation

For a full list of the products in scope, click here.

China has promised retaliation for the recent tariff increase, but hasn’t specified which products it may target. Both sets of tariffs represent a challenge for businesses within the U.S. as the trade tension grows.

Companies’ product data will continue to face new requirements as the global trade landscape shifts. Those leveraging a strong supply chain data management solution will be better positioned to maintain compliance in the event their goods are subject to tariffs. Download our Guide, Managing Data for Trade Compliance, to learn how Assent can help you efficiently meet your trade compliance obligations.

To learn how Assent’s Product Compliance Suite can streamline supply chain data collection and reporting processes, email info@assentcompliance.com.

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