Chinese Tariff Update
With the U.S. China Trade War escalating, increased tariffs on imports and exports are affecting much more than just petroleum and steel. After determining that China was not fulfilling their end of the initial Section 301 agreement and using unfair trade practices, President Trump has increased tariffs for List III Chinese products from 10% to 25%, according to the Federal Register Notice (FRN) published May 9, 2019.
After the U.S. imposed the Section 232 duties on steel and aluminum back in March of last year, the Chinese retaliated with import duties on 128 U.S. exported goods imported to China, including agricultural products such as fruit, nuts, and pork. Now, China has followed suit once again, increasing tariffs on American goods to 25%. And while the earlier tax mainly affected industrial products, the new adjustment will include more everyday items such as smartphones, shoes, clothes, even pets. With a greater effect on the end consumer, these changes will impact the U.S. economy greatly.
Although claims are made that the action will ultimately prove beneficial for American citizens and businesses, many are apprehensive about the amount of time it will take for a realistic negotiation to be reached which is reasonable for both sides. While the stalemate persists, however, Charter Brokerage is still actively filing for drawback refunds on List II and List III products and can help you navigate through the complex rules and regulations that govern the international trade and customs processes.
If you have any questions on the increase in the tariff, please do not hesitate to reach out to Charter at firstname.lastname@example.org; drawback questions on the Section 301 tariffs should be directed to Charter’s Business Development team at email@example.com.