As expected, China announced yesterday that it will implement retaliatory tariffs of either 10% or 5% on $60 billion worth of U.S. products imported into China beginning September 24, 2018. China’s action is in response to the U.S. announcement of its intention to implement the Section 301 List 3 tariffs.
The latest round of Chinese retaliatory tariffs will apply to products of U.S. origin that fall on four lists that China published on August 3, 2018. China organized these four lists according to proposed tariff rates of 25%, 20%, 10% and 5%. Based on its latest announcement, while the products have not changed, the tariff rates have. China will impose a 10% retaliatory tariff on U.S. products on the 25% and 20% lists, and it will impose a 5% tariff on products on the latter two lists. Links to these four lists are provided for your reference below. While the lists are in Chinese, the products can be identified by their tariff numbers.
U.S. Products to be Subject to 10% Tariff:
U.S. Products to be Subject to 5% Tariff:
Unlike the United States, China does not offer a formal process for importers to request product exclusions from the tariffs, and affected companies must explore other options to mitigate the impact of the Chinese retaliatory tariffs on their businesses, such as advocacy, changes to their sourcing and manufacturing strategies, and other duty planning methods.
Our trade team in China routinely assists companies evaluate their options and implement mitigation strategies to address the tariffs. If you have questions, or if you would like to explore possible options, you can either contact us or reach out to Jon Cowley (email@example.com) or Frank Pan (firstname.lastname@example.org) directly.
We hope this update is helpful.