A lot of new tariffs have come into effect this year, and more are scheduled. These increases are substantial, and if they affect the goods your company imports, you are well aware of how this is affecting your business operations.
For the past 3 years the ocean carriers operating in the Transpacific and Indian Subcontinent Trade Lanes have made attempts on the first day of each month and again on the 15th day of the month to try and pass through rate increases to help them recover from years of unprofitability. The newly formed alliances that were finalized in 2017 helped them recover to a point where the carriers collectively recorded a year of profitability. That still left them with years of negative numbers to recover from.
Yet another round of tariff increases are being planned, which will add 10% duty to more than 6000 HTS#'s, affecting $200 Billion in new products. In scanning through the listing of tariff codes, there are a LOT of products affected, from foods to handbags to wood/paper products, fabrics, yarns, tile, glass, lots of additional iron/steel/aluminum products, various machinery, pharmaceuticals, in addition to televisions and bicycles. Please review the full listing at https://ustr.gov/sites/default/files/301/2018-0026%20China%20FRN%207-10-2018_0.pdf. These could go into effect as soon as September 2018.
The final listing of Chinese-origin products that will be hit with an additional 25% in duties under Sec. 301 was announced by the USTR on June 15th. The effective date of these new tariffs will be July 6. Although the final listing was reduced somewhat, from 1333 items to 818, it still represents a large number of consumer-level items. The full tariff listing of affected products, along with descriptions, can be found HERE. Please know that we are expecting another round of 284 products to be added to this listing, but the exact timing of this has not yet been announced. This proposed listing can be found HERE.
