As expected, the administration announced Section 301 tariffs on about $50 billion worth of Chinese goods with two purposes: (1) balance the trade relationship between the US and China and (2) prevent the transfer of American technology and intellectual property to China when US businesses operate in China.
After the announcement this morning, China responded by issuing their own tariffs on 659 types of goods from the US starting on July 6th. When announcing the initial $50 billion in tariffs, Trump also indicated any Chinese retalation will also be met with additional US tariffs.
Cliff Notes version of today’s developments:
- 2/3rds of the US duties on 1,102 types of goods begins July 6th.
- The goods announced on Friday will apply later after a review period ends.
- The US imposed these tariffs to limit the transfer of technology to China.
- Some lawmakers say these tariffs will only impact the average American due to higher prices.
- The first list of goods subject to tariffs can be found here.
- The second list of goods subject to tariffs can be found here:
Whether or not these announcements are posturing on both sides, check back for more details.
If you have any questions on how these new tariffs will impact your import or export business, contact experienced trade attorney, David Hsu at 832-896-6288 or by email at: email@example.com.