USTR Announces Final Product List for New Round of Punitive China Tariffs
The Office of the United States Trade Representative today released a final list of products from China that will be subject to a new round of punitive tariffs of 10 percent beginning on September 1.
Some products were removed from the initial draft list published in May due to “health, safety, national security and other factors” and will not be subject to the 10 percent tariffs. Other products, including certain outdoorfootwear and apparel items, will not pay the 10 percent tariff until December 15, 2019. Outdoor Industry Association (OIA) is currently reviewing the list to identify how outdoor products will be impacted.
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 10months (Sept. 2018 – June 2019) on $200 billion worth of products – List 3 – from China, compared to the same period a year ago.A variety of outdoor recreation equipment, including backpacks, camp chairs and bicycles,is saddled with the current 25 percent punitive tariff, causing the average tariff rate on outdoor equipment to more than double from the previous year.
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. As a result, many American outdoor industry manufacturers and retailers may be forced to eliminate products, cut jobs or go out of business altogether, and consumers will feel the impact as a result of higher prices on the equipment, footwear and apparel they need to get outside.
In June, OIA and 15 outdoor companies testified before high-level Trump administration officials in Washington, D.C., in opposition to tariffs on List 4 products, highlighting the devastating impact that tariffs would have on jobs, innovation, business opportunities and getting more Americans outdoors. Additional companies filed written comments during the public comment period and joined a letter organized by the Americans for Free Trade coalition that had a total of 661 signatories in opposition to the latest round of tariffs.
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.
- Economic Data: OIA will continue to analyze the economic impact that these punitive tariffs are having on the outdoor industry. Each month, we will release information on how much morethe industry is paying in tariffs on products imported from China compared to last year to communicate the real impacts the escalating tariffs are having industry-wide.
- Congressional Event: On September 12, we will host an event in Congress with OIA members to discusstheir outdoor gear and products and the complexity of the outdoor supply chain for companies sourcing out of China. We willalso organize a series of meetings between OIA members and their elected representatives to discuss the China 301 tariffs. Contact me at email@example.com if you are interested in participating in this event.
- Grassroots Activation: We are eager tohear how this new round of tariffs will impact your bottom line and business growth opportunities. These real-life examples of the negative impact the tariffs are having on our industry can be the key to pushing Congress and the administration to respond to our concerns. You can contact your representatives here to express your opposition to the China tariffs or reach out to me directly at firstname.lastname@example.org to discussways to get engaged and even invite your congressional representative to visit your facility over the August recess. We are also looking for proxies from the industry who can speak to the media about this critical issue.
Finally, 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.