10 May Update on China Sanctions
On May 10th, the United States announced that there will be an increase in the third set of Section 301 Chinese tariffs from 10% to 25%.
The increase was originally scheduled to take effect on January 1st. Because negotiations pertaining to forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusion, cyber theft, services, and agriculture were not successful, merchandise exported on or after May 10th AND entered on or after June 15th will be subject to the increase.
The entry date was originally June 1st, but this was extended on May 31st to allow for enough time for merchandise in transit to avoid the increased rate.
The administration is also planning on expanding the additional 25% duty to nearly all remaining Chinese products. A public hearing has been scheduled for June 10th, and written comments must be submitted by June 17th.
The effective date for these duties is expected to be in mid to late July.