USTR Takes First Steps in Implementing Tariffs on $300B in Chinese Imports
What has been discussed for months as trade tensions continue between the US and China has now reached the first steps in a formal process for the US Trade Representative (USTR) to implement tariffs on $300B in Chinese Imports. The USTR released a proposed list of Chinese goods last week, which according to SupplyChainDive represents nearly every remaining untaxed good imported from China.
Items on the 137 page list could be subject to duties of up to 25% and includes raw materials and products that could impact dozens of industries, further impacting just about every US Business and direct consumer is some way.
What will the trickle down affect of these tariff’s do to our existing supply chain? How much reshoring might we expect to see from this policy? Tariffs on goods traded between the US and China have already increased in several stages since early 2018, and some experts say many common goods are expected to become a lot more expensive by summer.
“The supply chain will try to absorb as much of the blow as they can, then they will move those costs forward to consumers,” said David French, senior vice president of government relations at the National Retail Federation, as cited on CNBC. In preparation, retailers are stocking up on merchandise.
The earliest date the tariffs can take effect is June 24, as the USTR will hold a public hearing on June 17 to seek public comments. Comments can be submitted up to seven days after the hearing. Leading up to the final decisions, the nation’s major container ports are anticipated to see a rise in imports through the summer, including South Florida’s PortMiami which already had a record breaking January in Q1 with a total of 104,183 TEUs of container cargo.
Take a look at the 137 page list of raw materials and products included here:
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