U.S.-China Trade War Heats Up

A continued stalemate in trade negotiations has resulted in the U.S.-China trade war heating up this past week. On May 10, the United States raised the 10 percent duty to 25 percent on $200 billion worth of imports from China. Included in “List 3” of 5,745 products now subject to a 25 percent import tax are machinery and mechanical appliances such as hydraulic presses, drilling machines, forging or die-stamping machines; ships and boats such as canoes, sailboats and motorboats; live or frozen fish and crustaceans; sunscreen, makeup and shampoo; carpet and other floor coverings; wooden home furnishings; and even string Christmas lights.

On May 13, the Chinese Foreign Ministry declared that China “will never succumb to external pressure” and announced $60 billion in retaliatory tariffs that will take effect on June 1. The retaliatory tariffs are based on the list of products released by China last September, and more than 5,000 products exported to China from the United States will face new duties ranging from five percent to 25 percent beginning June 1.

Finally, the U.S. Trade Representative (USTR) announced a proposed additional ad valorem duty of up to 25 percent on products from China with an annual $300 billion trade value. The proposed “List 4” covers 3,805 full and partial tariff subheadings. The USTR stated that these proposed tariffs cover “essentially all remaining imports from China.” However, the list excludes pharmaceuticals and rare earths minerals used in electronics and batteries. List 4 will be subject to a comment period and public hearings before they are put in place.

One Voice, the advocacy arm of the Precision Metalforming Association and the National Tooling and Machining Association, is on the record supporting the President’s efforts and those of previous administrations to address China's illegal theft, subsidies and efforts to undercut our members. PMA joined with a number of other groups calling for the United States, EU and others to act together and create a universal oversight regime over China. However, some members have reported that due to the U.S. unilateral action against China, some customers are now sourcing more finished products or manufactured goods from overseas to avoid the China tariffs.

For the full list of products included on U.S. List 3, click here. For the proposed products that will be included on List 4, click here. For items included on U.S. Lists 1 and 2, click here.  For a list of U.S. products subject to Chinese retaliations beginning June 1, contact Christie Carmigiano at ccarmigiano@pma.org.


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