This Week’s U.S & China Trade Developments

On July 6^th, the United States began collecting 25 percent tariffs on 818 different classifications of goods that were made in China.  These tariffs have an annual trade value of approximately $34 billion. This is known as “List 1.”

On August 7^th, the U.S. Trade representative announced that a second list of tariff numbers with an additional 279 classifications is now finalized and will become effective August 23^rd, 2018.  This list imposes 25 percent tariff in addition to the regular tariff rates.  This second list carries an annual trade value of approximately $16 billion. This is known as “List 2.”

China responded to the tariffs by imposing their own retaliatory tariffs against the United States.  These tariffs prompted the U.S. take further action by proposing an additional 10 percent ad valorem duty on products of China with an annual trade value of approximately $200 billion spread across 6,031 tariff subheadings.  This is known as “List 3.”   The U.S. Trade Representative Lighthizer has also been instructed to consider raising the “List 3” tariffs to 25 percent.

The determination on “List 3” will be made after the hearings that are scheduled for August 20^th to 23^rd.  The Office of the U.S. Trade Representative has stated that the final decision will be made sometime after August 30^th.

Please note that these lists only impacts goods manufactured in China and shipped into the United States.