Two weeks ago, President Trump tweeted out that the trade negotiations between the US and China had faltered and a 4th tranche of tariffs, set at 10% would be applied to the remaining $300 billion of Chinese imports that aren’t covered by the first three sets. On August 13th the USTR announced that certain goods on the list wouldn’t have the September 1st effective date and would be effective on December 15, 2019 to avoid higher prices during peak season. As of August 15, 2019 we’ve learned that these tariffs will be applied based on the date of entry and not on the date of departure.
“We’re doing this for the Christmas season,” Trump told reporters Tuesday afternoon, according to associated press. “Just in case some of the tariffs would have an impact on U.S. customers.” The list of goods on the extension include many consumer products including electronics, clothing, shoes and some toys, all of which are the backbone of the holiday shopping season. The USTR also declared they’d be removing any products on the list that had health, safety, national security or other concerns.
Though the USTR will be conducting the same exclusion process for List 4 (A&B) so importers can request an exclusion for individual products, the dates for that process have not yet been set. Unfortunately, the bifurcation of the list may be too late as some companies have already started ramping up orders for the holiday season in anticipation of the tariffs that were announced two weeks ago.
The crux of the issue for us here at Edward J. Zarach & Associates is the planning and timing that goes into the shipments we handle for our clients. We understand how important it is to have foreknowledge of issues that can impact their supply chains and we’re committed to giving you the best information we have. We’ll keep monitoring this situation to counsel on the best way to plan for your 4th quarter. If you have any questions or need help on this at all, please reach out to your Zarach representative for assistance.