The U.S. increased Section 301 tariffs on $200 billion of Chinese products from 10% to 25% today, as talks continued to try to salvage a potential deal.
The tariff hike went into effect hours after meetings between U.S. and Chinese negotiators failed to produce a settlement. The White House said that there were no plans to suspend the increase, which it had threatened months ago, and President Trump said steps were being taken to impose fresh 25% tariffs on an additional $325 billion in currently untaxed Chinese goods. Chinese leaders rejected U.S. claims that it has reneged on negotiations.
What you should know:
The new tariffs apply to goods leaving China and entering the U.S. after midnight on Friday May 10. Air shipments will be affected immediately, but cargo from China with a date export of May 9 or earlier will not be affected. Regardless of the export date, all affected 301 Section 1 goods from China will be subject to the 25% tariff if they enter the U.S. after June 1, 2019.
On Wednesday, May 8, the Office of the U.S. Trade Representative announced the effective date of the increase, and also said it would establish a process by which interested parties can request particular products within HTS (Harmonized Tariff Schedule) be excluded from the 25% tariff. See the CBP notice HERE.
What you should do:
In this rapidly changing environment, we are advising clients to consider the following:
- Know whether your imports are affected and decide what you’re going to do about it.
- If you have a question about whether your products are affected by the tariffs, we may be able to help. We can tell you what impact the tariffs will have on your shipments, and help you file an exemption.
- Don’t panic, but also don’t ignore the possible significant impact to your business.
This continues to be a very fluid situation, and we are here to help you find the proper course of action.
Contact me if we can be of help and check back on our website at www.wbskinner.com for frequent updates.