Today, in apparent retaliation for the 4th tranche tariffs placed on the remaining $300 billion in Chinese imports by President Trump – some of which will be effective on September 1, 2019 and the rest on December 15, 2019 – China announced they would be placing an additional 5% to 10% in tariffs on $75 billion of US imports on the exact same timetable.
After the announcement by China, President Trump urged American manufacturers to return their businesses back to US soil to avoid these duties and advised a reciprocal action would be coming soon.
Just an hour ago President Trump announced an increase in tariffs against Chinese imports that will become effective on October 1, 2019. According to the United States Trade Representative, the tariffs will increase by 5% on $550 billion worth of Chinese imports.
You can find the USTR statement here. Some important points:
- The first 3 lists totaling $250 billion in imports dutiable at 25% will increase by 5%. Effective October 1st, the duty on List 1, 2, and 3 goods will be collected at 30%.
- The last list, split between 4A and 4B, with the effective dates of September 1st and December 15th respectively, which was to be set at a duty of 10% will increase by 5% to 15% with the same September and December effective dates.
We at Edward J. Zarach & Associates are carefully watching this unfold and will continue to bring you the most up to date information as it becomes available.