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Proposed New Tariffs on Chinese Imports Cover Most of Tariff Schedule, Spare Footwear and Apparel

July 11, 2018 |Top News

The Office of the U.S. Trade Representative’s list of proposed tariff subheadings set for an additional 10 percent tariff on $200 billion in imports from China covers wide swaths of the tariff schedule that initially avoided Section 301 tariffs imposed July 6. While the 25 percent tariff already in place affects only goods of Chapters 84, 85, 86, 87, 88, 89 and 90 (with a few exceptions), USTR’s proposed list of additional subheadings includes products from nearly all sectors of the tariff schedule, with the notable exceptions of footwear and apparel and pharmaceuticals.

If imposed, the tariffs would come on top of not only the Section 301 tariffs imposed July 6 (see 1807060012), but also Section 232 tariffs on steel and aluminum products that have covered Chinese exports since March 23 (see 1803140030) and safeguard duties imposed on solar cells and large residential washers imposed the prior month (see 1802020012). A second list of $16 billion worth of Chinese goods potentially subject to a 25 percent Section 301 tariff is also still in play, with comments on those additional duties due July 23 (see 1806210029).

Senior government officials have said a final decision on the new round of tariffs, imposed because of China’s lack of response to the initial round, will be made sometime after Aug. 30 (see 1807100070). Once the tariffs take effect, "any merchandise subject to the increased tariffs admitted into a U.S. foreign trade zone on or after the effective date of the increased tariffs, except those eligible for admission under 'domestic status' as defined in 19 CFR 146.43, would have to be admitted as 'privileged foreign status' as defined in 19 CFR 146.41, and would be subject upon entry for consumption to the additional duty,” USTR said in its notice, which will be published in an upcoming issue of the Federal Register.

International Trade Today is providing a list of Harmonized Tariff Schedule headings with 8-digit subheadings that are included in USTR’s list. The appearance of a heading below does not mean the entire heading is proposed to be subject to the tariffs. USTR’s list should be consulted for a more detailed look at exactly which 8-digit tariff provisions may become subject to the 10 percent duties. Headings with tariff provisions included on USTR’s list are as follows:

Those who wish to testify for or against the inclusion of an item on the list must file by July 27, and written comments are due by Aug. 17, USTR said in its notice. Hearings will be held Aug. 20-23, it said.