Trump administration releases new information on next round of China tariffs
10 percent tariff will come into effect on either September 1 or December 15
The Office of the United States Trade Representative (USTR) has posted a notice on the Federal Register providing additional information on the implementation of a new round of punitive tariffs on products sourced from China (List 4). As the USTR posted on its website last Tuesday, a 10 percent punitive tariff will be placed on products on either September 1 or December 15.
- The tariffs will apply to goods when they are “entered for consumption, or withdrawn from warehouse for consumption” at either 12:01 a.m. on September 1 or December 15, depending on which list they are on.
- If China’s share of U.S. imports of a particular product is less than 75 percent, that product will be hit with the 10 percent tariff on September 1 (see product list here). If China’s share is more than 75 percent, that product will face the 10 percent tariff on December 15 (see product list here).
Outdoor apparel, footwear and equipment can be found on both lists.
The administration will also set up an exclusion process for List 4 that will give stakeholders the opportunity to file a petition to exempt a product from the punitive tariff for one year. While it is still unclear when that process will start, you can watch a recording of the Outdoor Industry Association (OIA) webinar on the List 3 exclusion process to get a better understanding of how to file a petition and what information will be needed. OIA will provide details on the List 4 exclusion process as soon as it is released.
The release of the final List 4 products comes as OIA released new data today showing that outdoor businesses have already paid $1.5 billion more in tariffs over the last 10 months (Sept. 2018 – June 2019) on $200 billion worth of products – List 3 – from China, compared to the same period a year ago. The OIA analysis indicates that if this next round (List 4) of tariffs goes into effect, $8.5 billion in outdoor products, including nearly all outdoor apparel, footwear and equipment imported from China, will face the new 10 percent tax.
We will continue to press Congress and the administration on the need to eliminate the existing punitive 25 percent tariff on outdoor products and prevent the new 10 percent tariff from being imposed. We are eager to support you as these tariffs go into effect. We will keep OIA members fully informed through trade alerts and other communications on developments in the U.S.-China trade war. We will also continue to host webinars and panel discussions on how your business can mitigate the impact of these tariffs and explore alternative sourcing options.