China has made the most recent “chess” move related to the trade war with the US, as the Customs Tariff Commission of the State Council announced a new round of $75 billion worth of tariffs on US goods. Effective September 1 (Beijing time), China will impose the additional tariff rate of 5% or 10% on 1717 items in tariff list 1. A 10% additional tariff will apply to items 1-916, and 5% will be imposed on items 917-1717.
Furthermore, China will impose the additional 5% or 10% tariff on 3361 items in list 2, effective December 15. 10% will apply for items 1-912, and 5% will apply for the remaining items 913-3361.
Additionally, the Customs Tariff Commission of the State Council announced that the tariffs on American car and auto parts ranging from 5-25% will resume as of December 15. These tariffs had previously been suspended in January of 2019.
At this time, please review the lists to determine if any of your products will have the additional tariffs imposed.
Please note, the situation with the trade war is entirely fluid, and seemingly changes by the day. With the conclusion of the G7 summit in France, there was hope that the US and China would resume trade talks and reach a negotiation point. The outcome of that remains to be seen.
In the meantime, BDP International will continue to monitor the situation as it evolves, and will keep our customers apprised accordingly.
Should you require any assistance with determining the tariff impact to your business, please click here for more information.