Hundreds of previously granted China tariff exclusions are set to expire December 31, 2020, at which point, unless extended, the specified goods will become subject to the additional US tariffs beginning January 1, 2021.
On January 15, 2020, the United States Trade Representative (USTR) announced the U.S. had signed an Economic and Trade Agreement (informally known as a Phase One agreement) with China.
In good faith of the deal, the U.S. advised in December 2019 that additional tariffs scheduled to become effective December 15, 2019 were not being implemented, but tariffs imposed on $250 Billion of China origin goods (known as List 1, 2 and 3) would remain in effect at 25%. The remaining tariffs ($120 Billion) are currently subject to tariffs of either 7.5% or 15% (referred to as List 4A).
According to statistics compiled by the Peterson Institute of Economics through September 2020, China’s year-to-date total imports of covered products from the United States were $65.9 billion, compared with a prorated year-to-date target of $124.9 billion. Over the same period, US exports to China of covered products were $58.8 billion, compared with a year-to-date target of $109.0 billion. Through the first nine months of 2020, China’s purchases of all covered products were thus only at 54 percent (US exports) or 53 percent (Chinese imports) of their year-to-date targets.
Updates will be provided as information becomes available. Full information on the China Tariff actions and exclusions may be found here.
For more information, contact Brian Rowe, Director – Customs Compliance & Regulatory Affairs.