Tariff Increase Delay on Chinese Goods Finalized
Updated: Mar 7, 2019
In accordance with the announcement of a temporary 90-day tariff truce between the U.S. and China, the United States Trade Representative (USTR) has finalized the tariff increase from 10% to 25% on Section 301 List 3 goods. As set out in the USTR's Notice of Modification of Section 301 Action, the date on which the rate of the additional duties will increase to 25 percent for the products of China covered by the September 2018 action in this investigation (List 3) has been postponed to March 2, 2019.
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According to a notice from the Office of U.S. Trade Representative (USTR), the tariff increase from 10% to 25% on Section 301 List 3 goods will be postponed "until further notice". While no formal deadline has been set, it's expected that the tariff increase will stay at 10% until President Trump and Chinese President Xi Jinping meet later this month to resolve remaining issues.
Please note that this delay in tariff increase has not impeded Congress from continuing to allow companies to request exclusions from this tariff. On February 27, lawmakers have introduced a legislation that would require the establishment of a process for excluding goods on List 3 and any future lists from the Section 301 tariffs. As with the existing exclusion process for List 1 and List 2 goods, U.S. companies would be able to apply for a refund for duties paid on any List 3 goods granted an exclusion.
Source: Sandler, Travis & Rosenberg Trade Report
In recent talks with the press, President Trump has suggested that trade talks between the U.S. and China have been going well and that if the two sides are "close to a deal," the planned tariff increase on Section 301 List 3 goods may potentially be pushed back.
We will continue to keep you updated as more information develops.