Trade Cases

Leibowitz on Trade: Tariffs Due Friday on Chinese Imports

Written by Lewis Leibowitz


Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington:

As President Trump tweeted this past Sunday, the U.S. Trade Representative has issued a notice that List Three of the tariffs on Chinese imports will be subject to 25 percent tariffs effective 12:01 a.m. Eastern time on Friday, May 10. The notice appeared in the Federal Register today. The wording of the notice is a bit unusual.

The language of the Annex to the notice has an unusual qualification on the effectiveness of the 25 percent tariffs included in List Three:  “Effective with respect to goods (i) entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on May 10, 2019, and (ii) exported to the United States on or after May 10, 2019,…” the rate of duty will be 25 percent. 

The italicized language appears to delay the effective date of the new tariff rate until entry is made after midnight tonight of goods “exported” on or after May 10, 2019.  The language does not say “exported from China,” but it clearly says “exported.”  If goods coming to the United States were exported before May 10, the new tariff rate does not seem to apply. Perhaps this provides a few extra weeks for negotiation before the trade war is fully escalated. Perhaps not. Still trying to determine the precise effect of the quoted language. Customs and Border Protection is reported to be trying to interpret the language also. This kind of qualifier is decidedly rare, if not unprecedented. Interesting indeed. 

The notice also commits the USTR to issue procedures for exclusion from the List Three goods. The notice includes no details—but I’ll be on the lookout for a new notice, which could appear at any time. 

Click here to visit the Federal Register website to view the notice in its entirety.

Lewis Leibowitz

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Lewis Leibowitz, SMU Contributor

Lewis Leibowitz

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