The Trump administration announced a new tariff that would impose a 10% tariff on US $200 billion worth of Chinese imports. 10% of the new tariffs will come into effect in September 24th and rise to 25% in January 1, 2019.
The White House announced the decision in a statement after the September 17 closing of the US Eastern Time market, saying that if China retaliated against American farmers or other industries, it would immediately start the "third phase" of imposing tariffs on about $267 billion of Chinese products.
China had previously said it would impose a 25-5% unequal tariff on US $60 billion of products and take retaliatory measures to increase tariffs on US imports. The US Treasury still plans to hold new trade talks with China this week and next week.
Prior to that, the United States had imposed tariffs on Chinese products worth 50 billion US dollars. According to the Ministry of Commerce, China imported US $13.37 billion from the United States and exported US $505.6 billion to the United States in 2017. That means nearly half of China's exports to the U.S. are subject to tariffs, including a 25% tariff increase of $50 billion and a 10% tariff increase of $200 billion from next Monday (September 24) to 25% by the end of the year.
Contents of the latest tax increase list
At a telephone briefing on September 17, a senior Trump administration official said the USTR had removed 297 product categories from the previously proposed tax list. It also removed some of the sub-categories from the list, including smart watches, Bluetooth devices and other specific consumer electronics products, specific chemicals, textiles, agricultural products, safety and health products such as bicycle helmets, rubber, plastic gloves, hospital hygiene products, etc.
The official said no new products were added to the final tariff list. After removing some products, we still think the approximate total amount is still about $200 billion.
Products that were spared include:
Some consumer electronics products, such as apple and Fitbit smart watches, AirPods headphones, Bluetooth devices;
Materials used in manufacturing, textile and agricultural chemicals;
Some health and safety products, such as bicycle helmets.
Child safety products such as car seats and game fences.
So far, more than 40% of Chinese exports to the United States have been included in the tax increase list, and high tariffs have forced most Chinese and American enterprises to abandon each other and interrupt cooperation.
The final tariff list was based on a six-day hearing at the end of August and adjustments to nearly 6,000 public comments submitted to the USTR office by the companies concerned.
Why did we decide to start with the 10% tax rate and finally rise to 25%? The Trump administration official said the move was aimed at giving U.S. companies "more opportunities to find alternative supplies and make adjustments accordingly".
267 billion after 200 billion?
On September 7, U.S. President Trump said there could be another $267 billion in tariffs in addition to the $200 billion currently under consideration.
The White House issued a statement saying that if China retaliated against American farmers or other industries, it would immediately start the "third phase" of imposing tariffs on about $267 billion of Chinese products.
Prior to this, the Chinese Ministry of Commerce has confirmed that the US side has received an invitation to the new round of trade negotiations. The aforementioned senior Trump administration official said that the Chinese and American delegations are still in contact, but there is no specific information on the negotiations released.
In response to a new round of US tariffs, China's Ministry of Commerce said on August 3 that in order to safeguard China's legitimate rights and interests, the Chinese government, in accordance with the laws and regulations of the People's Republic of China and the basic principles of international law, has imposed an emergency on China caused by the continued violation of US International obligations on the United States. About $60 billion in merchandise tax, plus 25%-5% tariff. The final measures and effective time will be announced separately.
The tax list issued by the Ministry of Commerce covers a wide range of products, ranging from food to household goods and means of production, including meat, seafood, berries, coffee and tea imported from the United States, household goods such as folding umbrellas, shoes, hats, kitchen supplies, and production materials such as glass and stainless steel.
On Sept. 13, a spokesman for the Commerce Department said on the US side that measures to impose tariffs on $200 billion of Chinese goods imported to the United States might soon be implemented, and after that, a possible tariff increase on another $267 billion of Chinese goods imported to the United States would respond by saying that unilateral tariff increases by the United States would ultimately hurt both China and the United States and the world at large. The interests of the people of the border area. Despite the voices of the vast industry and consumers, the United States has constantly released news that may lead to the escalation of Sino-US trade frictions. Such blackmail and pressure practices have no effect on China and will not help to solve the problem. It is hoped that the United States will comply with the public opinion and take pragmatic measures to bring Sino-US economic and trade relations back to normal through equal and honest dialogue and consultation.
Enterprises conducting self-inspection of products should note that the customs codes in the list are all U.S. Customs codes. The customs codes of Chinese exporters are not exactly the same. Please check the top six, and then confirm whether the products are listed according to the product description. If necessary, make reconfirmation with U.S. customers.
At present, we have learned that foreign traders have encountered the goods arrived in the United States, buyers found that the need to pay 25% tariff situation, the final buyer chose to discard. So please inquire whether the products are listed on the tax list and contact the American buyers to verify the situation. Whether it's a DDP clause order or Amazon's operations in the United States, you need to confirm the U.S. customs clearance tariffs in advance.
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