China Tariff Cheat Sheet — August 19
China Tariffs: The Trade War Gets Uglier
As the U.S. and China try to negotiate a trade agreement, the trade war continues to escalate. On August 13th, the USTR announced that the initial round of List 4 tariffs on the remaining $300 billion in Chinese imports would begin on September 1st. Unlike List 3, there will be no grace period for product-on-water. The 2nd round of List 4 tariffs will be implemented on December 15th. Together, all sports and fitness products made in China will be subject to the new tariffs, unless granted an Exclusion.
The U.S. action resulted in retaliatory tariffs and the Chinese adjusting the value of Chinese currency, which led to the U.S. labeling China a “currency manipulator.” Separately, the U.S. is seeking to strip China of its “developing economy” status at the WTO to deny it preferential trade treatment. With the rise in trade hostility between the two economic powers, there are a lot of moving parts and some confusion regarding the status of List 3 and List 4 tariffs. Please find a quick overview below to help you navigate these challenging times.