US Tariffs on Chinese Imports: Everything You Need to Know

By July 30, 2018 Export No Comments

Beginning in early June, the Trump Administration began taking steps to reduce the US trade deficit with China by levying tariffs on a broad range of products originating from China. After the US slapped a 25% tariff on Chinese aluminum and steel in early March, the US and China have entered into a tit-for-tat tariff process. As of now, the US has published 3 lists of imported products that are subject to tariffs. A 25% tariff on the first list of goods went in effect on July 6, 2018. Tariffs on the second and third lists of products are currently undergoing public comment and hearings.

List 1

  • 25% tariff that targets $34 billion worth of Chinese exports, consisting mainly of industrial parts and high-grade technology products, such as airplane parts and medical device components
  • In effect as of July 6, 2018
  • In response, the Chinese have levied a 25% tariff on $34 billion worth of US exports, including soybeans and pork products, two of the US’ largest exports to China.
  • See the full list of products here.

List 2

  • 25% tariff on $16 billion worth of Chinese exports, targeting technical machinery and parts
  • Undergoing consideration by the Office of US Trade Representative and public comments and hearings
  • Met by a threat from the Chinese government of a 25% retaliatory tariff on $16 billion worth of US goods
  • Implementation is not expected before mid-September
  • See the full list of proposed products here.
  • In effect as of August 7, 2018.

List 3

  • In response to retaliatory tariffs by the Chinese, the US announced an additional 10% tariff on $200 billion worth of Chinese imports.
  • Targets agricultural products, raw materials, and a broad range of consumer goods, such as everyday products like vacuum cleaners, electrical amps, and water bottles
  • Includes raw materials essential for manufacturing, such as plastics and steel casings
  • Undergoing consideration by the Office of US Trade Representative and public comments and hearings
  • Public hearings scheduled August 20–23.
  • Implementation is not expected before mid-September
  • See the full list of proposed products here.

Jimmy Ting, shipping guru and founder of Cargocentric, says that 90% of his clients importing from China will be affected by the 3 lists of tariffs.

The deadline to submit comments is September 6. To submit a comment, please visit this website. Directions for submission can be accessed here. The public hearings for “List 3” are scheduled for Aug. 20–23rd in Washington D.C. Following the public comments and hearings, the tariffs will be reviewed by the Office of the US Trade Representative and a final recommendation will be given to the Trump Administration. Currently, it is unclear if and when the tariffs will be implemented. However, it is unlikely that they will be put into effect before mid-September.

We highly recommended reviewing the links provided to understand how your product will be impacted and continuing to follow the situation as it develops. Those with questions or looking for guidance on how to process their shipping orders before the full imposition of the tariffs should contact Platform88 and Cargocentric as soon as possible. Stay tuned to Platform88and Cargocentric for the latest on the U.S.-China trade dispute and how it is shaping the Chinese manufacturing industry.

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