The Office of the U.S. Trade Representative (USTR) released a proposed list of products imported from China that could be subject to additional tariffs. This list was produced as part of the U.S. response to China’s trade practices related to transfers of U.S. technology and intellectual property.
Read the list of products and increased tariff rate proposals [PDF 301 KB]
There are reports today that China is moving to respond to the U.S. proposed tariffs. Chinese authorities announced new tariffs of 25% on U.S. exports including airplanes, automobiles, and soybeans. The Chinese tariffs are expected to apply to just over 100 categories of products and will affect $50 billion of U.S. exports to China.
Following the USTR’s section 301 investigation, President Trump announced in March 2018 that the United States will impose tariffs on approximately $50 billion worth of Chinese imports and take other actions in response to China’s policies that require U.S. companies to transfer their technology and intellectual property to domestic Chinese enterprises.
According to a USTR release, the proposed list of products and sectors subject to the proposed tariffs concerns industries such as aerospace, information and communication technology, robotics, and machinery.
The proposed list covers approximately 1,300 separate tariff lines. The total value of imports subject to the tariff increase is reported to be commensurate with an economic analysis of the harm caused by China’s "unreasonable technology transfer policies" to the U.S. economy.
In the United States, the proposed list of products will be subject to a public notice and comment process including a hearing. After completion of this process, the USTR will issue a final determination on the products subject to the additional duties.
For more information, contact a professional with KPMG’s Trade & Customs practice:
Douglas Zuvich | +1 (312) 665-1022 | firstname.lastname@example.org
Andrew Siciliano | +1 (631) 425-6057 | email@example.com
© 2018 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.