Over the weekend, the US Administration announced that it would postpone increasing S301 List 3 tariffs. The United States and Chinese President Xi Jinping plan to meet to reach a final trade agreement.
Over the last several months, there have been a number of key updates to S232 Tariffs and S301 Tariffs Lists 1-3. In addition, the United States and China continue to hold trade talks. Last week in Beijing, key officials from the United States and China outlined a “10-item list of ways China can reduce its trade surplus with the US."
Congress has requested that the office of the United States Trade Representative (USTR) create the formal exclusion process for products outlined under the S301 List 3 tariffs. These tariffs for $200 billion worth of imports from China are scheduled to increase from 10 percent to 25 percent on March 2, 2019.
Impending US Government Shutdown Averted
On the afternoon of February 15, 2019, US President Donald Trump signed an emergency spending bill to avert a partial government shutdown. The legislation provides $333 Billion worth of funding to several key Cabinet agencies through September 2019.
As the longest United States government shutdown in history continues, importers, exporters and trade agencies are beginning to feel the impacts. Typically, organizations such as the Federal Maritime Commission (FMC) and US Customs and Border Protection (CBP) would be in high gear. However, many of these agencies are operating at reduced capacity due to the discontinuation of non-essential services.
United States Trade Representative (USTR) issued a Federal Register notice today to delay collection of 25 percent S301 duty rate on List 3 goods until March 2, 2019. Click here to see the official statement from the USTR.
While the trade world has been focusing on the S232 and S301 remedy tariffs, the Miscellaneous Tariff Bill of 2018 has been quietly implemented. This has allowed for a temporary reduction or suspension of import tariffs paid on particular imported items into the United States.