On May 8, 2019, USTR released its federal register notice on the sudden tariff increase on the third tranche (List 3) Section 301 tariffs on China. The duty rate on the estimated $200 billion worth of Chinese products will increase from 10% to 25% effective 12:01am ET on Friday, May 10, 2019. The notice also announces that an exclusion process will be instituted for these products in a separate notice.
The rate increase to 25% means that any and all entries of goods imported into the United States as of 12:01 am on Friday May 10, 2019, will now be subject to a an additional tariff of 25%. This unusual decision to institute tariffs with less than 72 hours notice is yet another development in an already troubled and increasingly uncertain trade relationship between China and the United States.
This follows President Trump’s announcement via Twitter that the U.S. would be increasing the tariffs on China as the trade deal negotiations are moving “too slowly” and China’s attempt to “renegotiate.” (See our previous post here). The notice says that “China has chosen to retreat from specific commitments agreed to in earlier rounds” of the trade negotiations as the reason for the increase.
A delegation of Chinese officials will be arriving in D.C. on May 9 to continue the talks.