Trump Announces 10% Tariff on $300 Billion Imports from China for List 4 Goods
This new tariff would be separate from the already existing 25% tariff on $250 billion of imports from China.
This announcement follows up on the statements made during the G20 Summit in Japan on June 29, 2019, where President Trump shared that he would not impose tariffs on Section 301 List 4 goods “for at least the time being.
The United States Trade Representative has yet to issue specific coverage for this new 10% tariff. However, importers could most likely expect to see the goods subject to it on the proposed Section 301 List 4. USTR has indicated that a List 4 exclusion request process could come on the heels of the current List 3 exclusion request timetable, which ends September 30, 2019.
The exact products that will be on List 4 is unclear, but List 4 could include basic consumer merchandise, such as toys, electronic devices, and apparel as proposed on May 17, 2019. USTR plans to publish a Federal Register notice that will list the products that will be subject to the 10% tariff. A USTR spokesperson told the press that the list may reflect revisions based on the public comments and testimony at the June hearing.
While the President said the tariffs go into effect on September 1, it is unclear whether the tariffs will be assessed based on date of import into the US, or based on date of export from China. Administration officials say that the USTR will announce this policy decision. In the past, Trump has announced cease-fires on tariffs as part of an agreement to continue negotiations for a bilateral trade agreement, so it is also not without possibility that the President could suspend the issuance of tariffs before September 1.