List 3 Section 301 Duties Will Not Raise to 25%
On December 1, 2018, a statement released from the White House announced that President Trump has agreed that on January 1, 2019, he will leave tariffs on $200 billion worth of product from China at a 10% rate, and not raise it to 25%. The President of the United States, Donald Trump, and President Xi Jinping of China, met with their most senior representatives in Buenos Aires, Argentina and had a “highly successful meeting.”
China will a agree to purchase a substantial amount of agricultural, industrial, energy, and other products from the U.S. to reduce the trade imbalance between both countries. China will begin purchasing agricultural product from U.S. farmers immediately.
Both parties have agreed to immediately start negotiations on structural changes with respect to intellectual property protection, forced technology transfer, non-tariff barriers, cyber theft, agriculture and services. President Trump and President Xi have both decided to have an agreement completed within the next 90 days. If at the end of the 90 days, the parties are unable to reach an agreement, the 10% tariffs will be raised to 25%.
We advise companies to continue to review their classifications for importation. Companies planning to move production outside of China due to the Section 301 duties are advised to carefully review the origin of goods and ascertain if any Chinese origin raw materials are being used. A review is necessary to ensure that products produced outside of China are not of Chinese origin for customs purposes.
If you have any questions regarding associated risks or opportunities, please feel free to contact Robert Krieger or your Norman Krieger representative.