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All you need to know about Trump’s new import tax and how to handle it

23/08/2018 by Refael Elbaz

As tensions in the trade war between China and the USA hot up, USA importers of certain Chinese products will find themselves facing higher import taxes under the USA’s new Section 301 import duties. These duties are being applied to $34bn worth of goods.

 

When will Trump’s new China import taxes be applied?

The increased tariffs applied by the Trump administration on Chinese imports are being introduced in stages.

  • List 1 tariffs came into effect on July 6th 2018. These tariffs affect a total of 818 different types of goods and product lines with an additional tax of 25%.
  • List 2 tariffs will come into effect on the 23rd August 2018, affecting a further 279 different import classifications, again at a 25% tax rate.

 

What happens next?

A third proposed list is currently in development by the USTR (United States Trade Representative) too. This will see the introduction of a third proposed annex of products that will be subjected to a further 10% import tax increase with a value of over $200bn over the coming months – List 3.

List 3 has now been scheduled for hearings and is expected to go live in September at the earliest. We’ll keep you updated as the situation develops.

 

How can I find out if my goods will be affected by the changes, and what can I do about it?

We’ve created a comprehensive list of products and materials affected by Trump’s import tax increases to get you started.

If you find that your commodities will be subjected to Trump’s increased import taxes, you might be able to work around the tariffs to avoid an unnecessary charge. There are a few ways that you might be able to do this, including:

  • Filing for an exclusion for your goods or materials.
  • Modifying your product designs to produce goods that don’t fall within the new tariff lists.
  • Revising your existing product classifications.
  • Sourcing your goods or materials from a country other than China.
  • Checking your eligibility for duty drawbacks if you export goods from the USA as well as importing goods from China.

Talk to one of our China import specialists if you need advice on your options in tackling the new import charges, or if you have any questions.

Read more about the escalation in the US-China trade war – Amazon sellers are preparing for an increase in their supply chain costs

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