OK, Now We Have a Trade War!

June 19, 2018

Late yesterday, President Trump released a statement announcing the possibility of even more tariffs on Chinese goods. This comes in response to Beijing’s pronouncement of retaliatory tariffs against U.S. goods, which are scheduled to take effect July 6, 2018.

Early this week, President Trump formalized plans to assess a 25% tariff on $50 billion worth of imports from China. These tariffs were intended to encourage China to change its unfair practices identified in the Section 301 action with respect to technology and innovation, and serve as an initial step toward bringing balance to the U.S. trade relationship with China.

China ‘s reaction, however, was not to end its practice of state sanctioned piracy of U.S. Intellectual Property, but to apply retaliatory tariffs on $ 50 billion worth of United States exports. This prompted further action last night by Washington to “encourage China to change its unfair practices, open its market to United States goods, and accept a more balanced trade relationship with the United States.” The President has directed the United States Trade Representative to identify an additional $200 billion worth of Chinese goods for additional tariffs at a rate of 10 percent. After the legal process is complete, these tariffs will go into effect if China refuses to change its practices, and if it insists on going forward with the new tariffs that it has recently announced. ¬†According to the President, if China increases its tariffs yet again, “we will meet that action by pursuing additional tariffs on another $200 billion of goods. The trade relationship between the United States and China must be much more equitable.”

For a list of the current and proposed Chinese products that are targeted for U.S. Sanctions, go to “USTR Issues Tariffs on Chinese Products in Response to Unfair Trade Practices.”

According to a list of U.S. products that have been targeted for China’s Ministry of Commerce, the tariffs apply to 128 US products. Of them, 120 products ranging from dried fruits to stainless steel pipes will receive an extra 15% import tax, while eight will have to bear a 25% tax hike. The latter category consists of seven different kinds of pork products and aluminum scrap. According to data from the ministry, the group of goods taxed at 15% make up $977 million of US exports to China. The eight products subject to the 25% tariff make up $1.992 billion, for an overall total of nearly $3 billion.¬†

For further information or questions about this and other customs issues, contact George R. Tuttle, III at geo@tuttlelaw.com or at (415) 986-8780.


George R. Tuttle, III is an attorney with the Law Offices of George R. Tuttle in the San Francisco Bay Area.

The information in this article is general in nature, and is not intended to constitute legal advice or to create an attorney-client relationship with respect to any event or occurrence, and may not be considered as such.

Copyright © 2018 by Tuttle Law Offices.  
All rights reserved.

 Information has been obtained from sources believed to be reliable.  However, because of the possibility of human or mechanical error by our offices or by others, we do not guarantee the accuracy, adequacy, or completeness of any information and are not responsible for any errors, omissions, or for the results obtained from the use of such information.


Subscribe Feedback Previous Newsletters