As NATM previously reported, on May 10 Section 301 List 3 tariffs escalated from 10% to 25%. On May 21st the US Trade Representative announced in a Federal Register notice that the exclusion process for List 3 was to be implemented on or around June 30, 2019. The notice includes the form to be used for making an exclusion request. It is important to note that for List 1 and List 2, requests received early in the process have been decided on more quickly.
As a result of the List 3 escalation, on Monday, May 13 China announced retaliatory tariffs ranging from 5% to 25% on $60 billion of U.S. exports to take effect beginning June 1. The announcement from China noted that the increase of List 3 tariffs was an “an escalation of Sino-US economic and trade frictions, contrary to the consensus between China and the United States on resolving trade differences through consultations, jeopardizing the interests of both sides and not meeting the general expectations of the international community.”
As anticipated, the United States Trade Representative released a List 4 late in the day on May 13. List 4 includes a vast array of $300 billion worth of goods, from books to housewares, shoes, and sporting goods and much more. The proposed tariff rate is 25%. Along with the release of List 4 comes a timeline for hearings and comments from the public. Although no firm date has yet been set, implementation of List 4 is currently not expected before late June.
NATM will keep members apprised as the List 3 exclusion process is released and as List 4 moves forward.