Trade Policy

On May 13, 2019, the Office of the U.S. Trade Representative (USTR) released another round of proposed tariffs on Chinese goods worth roughly $325 billion. If these new tariffs come into effect, this would be the fourth round of tariffs in the ongoing and escalating trade war between the two countries. This proposed list of new tariffs came in response to China’s retaliatory tariff increase on $60 billion worth of U.S. products which was in response to the U.S.’s sudden and unprecedented increase of tariffs to 25% on the third round of Section 301 goods which had been in effect since September 24, 2018.

On May 8, 2019, USTR released its federal register notice on the sudden tariff increase on the third tranche (List 3) Section 301 tariffs on China. The duty rate on the estimated $200 billion worth of Chinese products will increase from 10% to 25% effective 12:01am ET on Friday, May 10, 2019. The notice also announces that an exclusion process will be instituted for these products in a separate notice.

On Monday, May 6, 2019, U.S. Trade Representative Robert Lighthizer piggybacking on the President’s tweet announced that the tariff rate on the third tranche (List 3) of Section 301 tariffs would be increased from 10% to 25% at 12:01am on May 10, 2019. Robert Lighthizer issued a statement that USTR plans to release a draft federal register notice on the tariffs today; however, nothing further has been published or announced in the Federal Register for Tuesday May 7, 2019.

On Sunday, May 5, 2019, President Trump announced via Twitter that the tariff rate on the third tranche (List 3) of Section 301 tariffs would be increasing from 10% to 25% on Friday, May 10, 2019. According to the tweet, the reason for the increase is that the trade deal negotiations are moving “too slowly” and China’s attempt to “renegotiate.”

In the tweet the President also stated that an additional $325 billion dollars’ worth of goods “will be shortly” taxed at a rate of 25%.

On March 25, 2019, the Court of International Trade issued its decision in the American Institute for International Steel’s appeal on the institution of Section 232 tariffs on steel products.  The CIT found that the Section 232 tariffs were constitutional and thus this decision results in the continuation of these tariffs for the foreseeable future.