"List 3" China 301 Tariffs Scheduled to Increase from 10 to 25 Percent on May 10, 2019

May 2019

On May 8, 2019, the United States Trade Representative (USTR) announced that the tariff rate on the third tranche (List 3) of Section 301 tariffs will increase from 10 percent to 25 percent as of 12:01 am on May 10, 2019. The Federal Register Notice of this announcement can be read here.
 
The notice reiterates that USTR will establish a formal exclusion request process similar to the processes put in place for “List 1” and “List 2” products.  Details of the product exclusion process (including the procedures for submitting exclusion request) and an opportunity for interested parties to submit comments will be published in a separate notice. 
 
This announcement formalizes President Trump’s recent threat to increase the List 3 tariffs on products worth a total of $200 billion dollars because trade negotiations with China are moving “too slowly.”  President Trump further threatened to issue a “List 4” imposing 25 percent duties on all remaining Chinese origin products (worth $325 billion dollars) not already covered by Lists 1-3.     
 
Importers interested in evaluating the duty impact, exploring strategic responses to mitigate the duty exposure, and participating in product exclusion procedures, should contact a BDO Customs and International Trade Services professional.
 

CONTACT:
 
Damon V Pike
Principal
  James Pai
Senior Manager

 
Yun Gao
Manager
  Jay Cho
Manager

 
Travis Fournier
Manager