Newsflash: US-China Tariff Agreement Effective on December 1st

December 5, 2018

Dear Valued Customer,

Though originally anticipated to become effective January 1, the U.S. has decided to postpone the List 3 (U.S. 301) tariff increases, which contains over 5,000 tariff lines. The White House has agreed to delay the list 3 tariffs for 90 days from December 1. As a result, the U.S. will leave the tariffs on $200 billion worth of product at the 10% rate, and not raise to 25%. If an agreement is not reached with China after the 90 days, the tariffs are expected to increase to 25 percent on or around March 1.

While there is still much uncertainty on what changes the negotiations will bring, in addition to the postponement of “list 3” products, this agreement also delays the implementation of “List 4” increases, which would levy tariffs on all remaining Chinese products not already affected.

To help you better understand the List 3 (U.S. 301) Products and HTS codes effected, see below link:

List 3 – products pay 10% additional tariff, effective September 24, 2018, expected increase to 25% March 1, 2019.

List 4 – only threatened at this point, tariffs currently unavailable

Still unsure on how this can this impact your business? Please reach out to your local Masterpiece International representative. We will be happy to discuss what impact this can have, as well as solutions that are available.

Thank You,

Tariff Updates:

EU and U.S. tariff implementation: The Council moved forward with negotiating mandates to implement tariff elements of the recent EU–U.S. joint statement, a step toward reducing import duties and creating tariff-quota rules.
U.S. tariff policy legal and policy actions: U.S. tariff policy is in transition as legal challenges move through the courts, with decisions that could determine whether certain duties stay in place or are overturned. With potential cost impacts and even possible refunds on the line.
EU carbon-border measures may be delayed and expanded: The European Commission may delay new carbon border proposals, which could expand tariffs to more products, until mid-December.
Global trade policy activity: Last month, Global Trade Alert reported hundreds of new trade and industrial policy measures worldwide, from shifting tariffs to fresh subsidies and trade defense actions. These changes could directly affect costs, market access, and compliance for exporters and importers, making it essential to stay informed.

How Imperative Logistics Can Support You:

Regulatory-monitoring alerts: We provide tailored alerts for tariff and quota changes that affect your product categories and shipping lanes.
Strategic planning for compliance: Our team helps you anticipate changes in trade rules and evaluate alternative routings to keep shipments moving smoothly.
Alternative routing & customs solutions: We can explore different routing and customs options with you to help ensure your supply chain continues to operate smoothly and to reduce the risk of delays or disruptions.
Ongoing guidance: We provide expert support and personalized advice to help you navigate and respond quickly to changing trade regulations, ensuring your operations remain uninterrupted and your supply chain stays reliable.

Have questions about how these tariff changes affect your shipments? Our team of experts is ready to provide guidance, please Contact Us anytime. For further details, please consult the latest Tariff Update and Reciprocal Tariff List for comprehensive information.

View the latest Tariff Information: