Trade Cases

Leibowitz on Trade: New Dates on New China Tariffs

August 13, 2019

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

The U.S. Trade Representative’s Office announced new effective dates on billions of dollars of imports from China today. Goods that, according to an analysis from the advocacy group Tariffs Hurt the Heartland, amounted to $28 billion in trade value, will not be hit with new 10 percent tariffs against China. On Sept. 1, 10 percent tariffs will be imposed by the United States on $112 billion in 2017 trade value. Ten percent tariffs on $160 billion in trade value will be delayed until Dec. 15 to permit popular items for Christmas to be imported without the tariff burden.

China is an important source of apparel imports to the United States; over 90 percent of apparel purchased in the United States is imported, and a significant percentage is from China. Until now, most apparel imports have been exempt from the earlier China tariffs. About $7.3 billion will be hit by 10 percent tariffs on Sept. 1, and about $6.7 billion will be hit on Dec. 15, according to Tariffs Hurt the Heartland.

President Trump tweeted that the delay until Dec. 15 would take a burden off U.S. consumers—but then again he claims the tariffs do not hurt American consumers.

We still do not know whether the Sept. 1 date applies to entries on or after that date or exports from China on or after that date. We should find out which it is in the next day or two.

Retailers reacted gratefully to the news that tariffs on the Christmas items would be delayed for 3½ months.

President Trump has also tweeted that U.S. Trade Representative Robert Lighthizer and Treasury Secretary Stephen Mnuchin had a “very productive” conversation yesterday with the senior Chinese officials with whom they have been negotiating. He predicted that China wants to do “something dramatic” to break the stalemate on trade.

If you have specific questions about coverage of the new tariffs, please let me know.

Lewis Leibowitz

The Law Office of Lewis E. Leibowitz
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