China Section 301 Tariffs Updates
In 2018, the U.S. imposed three rounds of tariffs on more than $250 billion worth of Chinese goods after its Section 301 investigation determined that China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation were unreasonable and discriminatory. The duties of up to 25% cover a wide range of products, from handbags to railway equipment.
On August 1, 2019, President Trump announced he will impose an additional 10% duty on the $300 billion, List 4 goods beginning September 1, 2019.
On August 13, 2019 the USTR delayed some of the additional tariffs on the proposed List 4 until December 15, 2019, List 4B, and removed some items from the list. However, many items will remain subject to the additional duties on September 1, List 4A.
Summary of Section 301 Tariffs
List No. | Covered Products | Additional Tariff Rate | Effective Date |
List 1 | $34 Billion
818 HTSUS Subheadings |
25% Increased to 30% |
July 6, 2018
October 15, 2019 (postponed from Oct. 1) |
List 2 | $16 Billion
284 HTSUS Subheadings |
25% Increased to 30% |
August 23, 2018
October 15, 2019 (postponed from Oct. 1) |
List 3 | $200 Billion
5,745 HTSUS Subheadings |
10% Increased to 25% Increased to 30% |
September 28, 2018
May 9, 2019 October 15, 2019 (postponed from Oct. 1) |
List 4 | $300 Billion
3,805 HTSUS Subheadings |
10% | September 1, 2019 |
List 4A | ~$120 Billion |
15% 7.5%
|
September 1, 2019
February 14, 2020 |
List 4B | ~$180 Billion |
15% |
December 15, 2019 |
The USTR has made technical amendments to Lists 3, 4A, and 4B to relieve issues of double Section 301 tariffs on some goods. Effective September 24, 2019, the Section 301 additional tariff will not be imposed on goods classified under any of 39 subheadings “if the applied rate of duty for an entry is derived from another subheading and if the entry, for this reason, already is subject to the additional tariff.” In other words, if a component of a good in one of these subheadings is subject to the Section 301 tariff, the good itself will not be subject to that tariff as well.