CHINA TARIFFS: U.S. SUSPENDS LISTS 4B
(December 16, 2019 )— Over the weekend, the President formally suspended List 4B Tariffs on Chinese imports and reduced tariffs on List 4A products from 15% to 7.5% “until further notice.”
As a result, no additional tariffs for products on List 4B, which were scheduled to commence on December 15, 2019, will be collected. However, tariffs on List 4A products, which went into effect September 1, 2019, will continue to be collected, but at a lower rate of 7.5%. The United States Trade Representative (USTR) is drafting a formal notice regarding the date that the new, lower List 4A rates will become effective.
The exclusion process for List 4A remains in place with petitions due to the USTR by January 31, 2020. SFIA is assisting the industry with List 4A exclusion petitions; for more information, please CLICK HERE.
Products on List 1, 2 & 3 will remain subject to a 25% tariff as the US and China continue to negotiate. In all, $120 billion in imports will still be subject to 7.5% tariffs and $250 billion in imports at 25%.
The “Phase One” agreement provides for increased purchases of American agricultural products, an easing of China’s forced technology policy, increased transparency on administrative proceedings and an improved dispute resolution mechanism that is more in line with other trading partners. The two leaders are expected to sign the Phase One deal in January, and it would go into effect 30 days later. A USTR announcement on the List 4A tariff reduction to 7.5% is expected before the Phase One Agreement is signed. This announcement will also include the effective dates.
CLICK HERE for the official White House Press Release on this trade deal.