Section 301 Tariffs from China go into effect today
Dear Valued Customer,
Section 301 Tariffs from China go into effect today, Friday July 6,2018.
Following a Memorandum from President Trump, on August 18, 2017, the U.S. Trade Representative (USTR) initiated an investigation under Section 301 of the Trade Act of 1974 into the government of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation.
Following USTR’s Section 301 investigation, President Trump announced in March that the United States will impose tariffs on approximately $50 billion worth of Chinese imports and take other actions in response to China’s policies that coerce American companies into transferring their technology and intellectual property to domestic Chinese enterprises. These policies bolster China’s stated intention of seizing economic leadership in advanced technology as set forth in its industrial plans, such as “Made in China 2025.”
In June President Trump announced that the tariffs would go into effect Friday July 6th.
That day has arrived and an additional 25% tariff will now go into effect on 818 Chinese Products. There are 284 additional products scheduled to be impacted by the additional 25% tariff but no date has been announced for the implementation on those products.
The first list comprises 818 products with a total import value of $34 billion, down from the 1,300 goods valued at $50 billion that had originally been proposed. A large percentage of the items on this list are from HTSUS Chapters 84, 85, 87, 88, and 90, such as engines and motors; construction, drilling, and agricultural machinery; machines for working minerals, glass, rubber, or plastic; rail locomotives and rolling stock; motor vehicles and motorcycles; helicopters and airplanes; and testing, measuring, and diagnostic instruments and devices.
The second list comprises 284 tariff lines with a total import value of about $16 billion. Many of these products are also classified in Chapters 84, 85, 87, and 90, but various products in chapters 27, 34, 38, 39, 70, 73, 76, and 89 are also included. Affected goods include plastics and plastic products; industrial machinery; machinery for working stone, ceramics, concrete, wood, hard rubber or plastic, and glass; cargo containers; tractors; and optical fibers.
We will continue to monitor the actions of the U.S. Government. An all out trade war is imminent as China will impose similar tariffs on products that are exported from the United States, particularly in the agricultural sector.
Thank you!
Sincerely,
Jim Shapiro/Stu Tobin
Thunderbolt Global Logistics LLC
https://thunderboltglobal.com/
410-633-2722