US Trade Representative Publishes List of Chinese Products Subject to Retaliatory Tariffs

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Overview


The Office of the US Trade Representative (USTR) published a list of 1,300 Chinese products, valued at $50 billion, on which it intends to impose an additional 25 percent tariff in retaliation for the “harm to the US economy” resulting from certain Chinese industrial policies. USTR also announced a public comment period to enable interested parties to request that products be removed from the list. In response to this April 3 announcement, China announced its own retaliatory import tariffs on 106 US products.

This On the Subject includes contributions from Leon Liu from MWE China Law Offices.

In Depth


On April 3, the Office of the US Trade Representative (USTR) published a list of 1,300 Chinese products, valued at $50 billion, on which it intends to impose a 25 percent tariff on top of any existing US tariff in retaliation for the “harm to the US economy” resulting from certain Chinese industrial policies. The full US retaliation list, available here, includes products from the chapters listed in Annex I below.

In conjunction with its list, USTR announced a public comment period to enable interested parties to request that products be removed from, or added to, the list. Comments must be filed by May 11, 2018. The agency will also hold a public hearing on May 15, 2018, for parties wishing to comment further on the list. USTR has not set a specific deadline for implementing the new tariffs, but said it will provide “final options” to President Trump after the comment and hearing process conclude.

In addition to the proposed retaliatory tariffs, President Trump has also directed the Secretary of the Treasury to develop new restrictions on inbound Chinese investments aimed at preventing Chinese-controlled companies and funds from acquiring US firms with sensitive technologies. The US Treasury Department has until May 21, 2018, to develop these restrictions, which will be in addition to the restrictions already imposed by the Committee on Foreign Investment in the United States (CFIUS).

In response to the administration’s April 3 announcement, China announced its own retaliatory import tariffs on 106 US products. Its retaliation products, listed below in Annex II, will face 25 percent tariffs should the Trump administration move forward with its announced tariffs.

After China issued its retaliatory tariff list, President Trump directed USTR on April 5 to assemble an additional $100 billion worth of retaliatory tariffs against Chinese goods on the grounds that China had unfairly retaliated against American farmers and manufacturers rather than addressing its own “misconduct.” The specific additional tariffs, once announced by USTR, will be subject to a review and public comment period similar to the one now underway for USTR’s initial $50 billion list.

McDermott is actively engaged in this issue and can assist Firm clients and contacts affected by the announcement, including with the preparation of comments and other advocacy efforts to influence products on the list. Please contact any of the authors to seek assistance or learn more.

Annex I

HTS Chapters Represented on the USTR Retaliatory List*

 

HTS Chapter

Product

28

Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes

29

Organic chemicals

30

Pharmaceutical products

38

Miscellaneous chemical products

40

Rubber and articles thereof

72

Iron and steel

73

Articles of iron or steel

76

Aluminum and articles thereof

83

Miscellaneous articles of base metal

84

Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof

85

Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles

86

Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signaling equipment of all kinds

87

Vehicles other than railway or tramway rolling stock, and parts and accessories thereof

88

Aircraft, spacecraft, and parts thereof

89

Ships, boats and floating structures

90

Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments, and apparatus; parts and accessories thereof

91

Clocks and watches and parts thereof

93

Arms and ammunition; parts and accessories thereof

94

Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated sign illuminated nameplates and the like; prefabricated buildings

 

* Not all products contained in each chapter are represented.  For the complete list, visit: https://ustr.gov/sites/default/files/files/Press/Releases/301FRN.pdf

Annex II

Unofficial Translation of China’s Retaliation List

 

No.

Product

HTS Code

1.

Yellow soybean

12019010

2.

Black soybean

12019020

3.

Corn

10059000

4.

Cornflour

11022000

5.

Uncombed cotton

52010000

6.

Cotton linters

14042000

7.

Sorghum

10079000

8.

Brewing or distilling dregs and waste

23033000

9.

Other durum wheat

10011900

10.

Other wheat and mixed wheat

10019900

11.

Whole and half head fresh and cold beef

02011000

12.

Fresh and cold beef with bones

02012000

13.

Fresh and cold boneless beef

02013000

14.

Frozen beef with bones

02021000

15.

Frozen boneless beef

02022000

16.

Frozen boneless meat

02023000

17.

Other frozen beef chops

02062900

18.

Dried cranberries

20089300

19.

Frozen orange juice

20091100

20.

Non-frozen orange juice

20091200

21.

Whiskies

22083000

22.

Unstemmed flue-cured tobacco

24011010

23.

Other unstemmed tobacco

24011090

24.

Flue-cured tobacco partially or totally removed

24012010

25.

Partially or totally deterred tobacco stems

24012090

26.

Tobacco waste

24013000

27.

Tobacco cigars

24021000

28.

Tobacco cigarettes

24022000

29.

Cigars and cigarettes, tobacco substitutes

24029000

30.

Hookah tobacco

24031100

31.

Other tobacco for smoking

24031900

32.

Reconstituted tobacco

24039100

33.

Other tobacco and tobacco substitute products

24039900

34.

SUVs with discharge capacity of 2.5L to 3L

87032362

35.

Other vehicles equipped with an ignited reciprocating piston internal combustion engine and a drive motor that can be charged by plugging in an external power source. Cylinder capacity displacement exceeding 2500ml, but not exceeding 3000ml for SUVs (4 wheel drive)

87034052

36.

Vehicles with discharge capacity of 1.5L to 2L

87032342

37.

Other vehicles equipped with an ignited reciprocating piston internal combustion engine and a drive motor that can be charged by plugging in an external power source. Cylinder capacity displacement exceeding 1000ml, but not exceeding 1500ml for SUVs (4 wheel drive)

87034032

38.

Passenger cars with discharge capacity 1.5L to 2L, 9 seats or less

87032343

39.

Other vehicles equipped with an ignited reciprocating piston internal combustion engine and a drive motor that can be charged by plugging in an external power source. Cylinder capacity displacement exceeding 1000ml, but not exceeding 1500ml for 9 passenger cars and below

87034033

40.

Passenger cars with discharge capacity of 3L to 4L, 9 seats or less

87032413

41.

Other vehicles equipped with an ignited reciprocating piston internal combustion engine and a drive motor that can be charged by plugging in an external power source. Cylinder capacity displacement exceeding 3000ml, but not exceeding 4000ml for 9 passenger cars and below

87034063

42.

Off-road vehicles with discharge capacity of 2L to 2.5L

87032352

43.

Other vehicles equipped with an ignited reciprocating piston internal combustion engine and a drive motor that can be charged by plugging in an external power source. Cylinder capacity displacement exceeding 2000ml, but not exceeding 2500ml for off-road vehicles

87034042

44.

Passenger cars with discharge capacity of 2L to 2.5L, 9 seats or less

87032353

45.

Other vehicles equipped with an ignited reciprocating piston internal combustion engine and a drive motor that can be charged by plugging in an external power source. Cylinder capacity displacement exceeding 2000ml, but not exceeding 2500ml for 9 passenger cars and below

87034043

46.

Off-road vehicles with discharge capacity of 3L to 4L

87032412

47.

Other vehicles equipped with an ignited reciprocating piston internal combustion engine and a drive motor that can be charged by plugging in an external power source. Cylinder capacity displacement exceeding 3000ml, but not exceeding 4000ml for off-road vehicles

87034062

48.

Diesel-powered off-road vehicles with discharge capacity of 2.5L to 3L

87033312

49.

Other vehicles equipped with an ignited reciprocating piston internal combustion engine and a drive motor that can be charged by plugging in an external power source. Cylinder capacity displacement exceeding 2500ml, but not exceeding 3000ml for diesel-powered off-road vehicles

87035052

50.

Passenger cars with discharge capacity of 2.5L to 3L, 9 seats or less

87032363

51.

Other vehicles equipped with an ignited reciprocating piston internal combustion engine and a drive motor that can be charged by plugging in an external power source. Cylinder capacity displacement exceeding 2500ml, but not exceeding 3000ml for 9 passenger cars and below

87034053

52.

Off-road vehicles with discharge capacity of less than 4L

87032422

53.

Other vehicles equipped with an ignited reciprocating piston internal combustion engine and a drive motor that can be charged by plugging in an external power source. Cylinder capacity displacement not exceeding 4000ml for off-road vehicles

87034072

54.

Other vehicles which are equipped with an ignited reciprocating piston internal combustion engine and a drive motor and can be charged by plugging in an external power source

87034090

55.

Other vehicles that are equipped with a compression ignition type internal combustion engine (diesel or semi-diesel) and a drive motor, other than vehicles that can be charged by plugging in an external power source

87035090

56.

Other vehicles which are equipped with an ignition reciprocating piston internal combustion engine and a drive motor and can be charged by plugging in an external power source

87036000

57.

Other vehicles that are equipped with a compression-ignition reciprocating piston internal combustion engine and a drive motor that can be charged by plugging in an external power source

87037000

58.

Other vehicles that only drive the motor

87038000

59.

Other vehicles

87039000

60.

Other gasoline trucks of less than 5 tons

87043100

61.

Transmissions and parts for motor vehicles not classified

87084099

62.

Liquefied Propane

27111200

63.

Primary Shaped Polycarbonate

39074000

64.

Supported catalysts with noble metals and their compounds as actives

38151200

65.

Diagnostic or experimental reagents attached to backings, except for goods of tariff lines 32.02, 32.06

38220010

66.

Chemical products and preparations for the chemical industry and related industries, not elsewhere specified

38249999

67.

Products containing PFOS and its salts, perfluorooctanyl sulfonamide or perfluorooctane sulfonyl chloride in note 3 of this chapter

38248700

68.

Items listed in note 3 of this chapter containing four, five, six, seven or octabromodiphenyl ethers

38248800

69.

Contains 1,2,3,4,5,6-HCH (6,6,6) (ISO), including lindane (ISO, INN)

38248500

70.

Primarily made of dimethyl (5-ethyl-2-methyl-2oxo-1,3,2-dioxaphosphorin-5-yl)methylphosphonate and double [(5-b Mixtures and products of 2-methyl-2-oxo-1,3,2-dioxaphosphorin-5-yl)methyl] methylphosphonate (FRC-1)

38249100

71.

Containing pentachlorobenzene (ISO) or hexachlorobenzene (ISO)

38248600

72.

Containing aldrin (ISO), toxaphene (ISO), chlordane (ISO), chlordecone (ISO), DDT (ISO) [Diptrix (INN), 1,1,1-trichloro-2 ,2-Bis(4-chlorophenyl)ethane], Dieldrin (ISO, INN), Endosulfan (ISO), Endrin (ISO), Heptachlor (ISO) or Mirex (ISO).

38248400

73.

Other carrier catalysts

38151900

74.

Other polyesters

39079999

75.

Reaction initiators, accelerators not elsewhere specified

38159000

76.

Polyethylene with a primary shape specific gravity of less than 0.94

39011000

77.

Acrylonitrile

29261000

78.

Lubricants (without petroleum or oil extracted from bituminous minerals)

34039900

79.

Diagnostic or experimental formulation reagents, whether or not attached to backings, other than those of heading 32.02, 32.06

38220090

80.

Lubricant additives for oils not containing petroleum or extracted from bituminous minerals

38112900

81.

Primary Shaped Epoxy Resin

39073000

82.

Polyethylene Terephthalate Plate Film Foil Strips

39206200

83.

Other self-adhesive plastic plates, sheets, films and other materials

39199090

84.

Other plastic non-foam plastic sheets

39209990

85.

Other plastic products

39269090

86.

Other primary vinyl polymers

39019090

87.

Other ethylene-α-olefin copolymers, specific gravity less than 0.94

39014090

88.

Other primary shapes of acrylic polymers

39069090

89.

Other primary shapes of pure polyvinyl chloride

39041090

90.

Polysiloxane in primary shape

39100000

91.

Other primary polysulphides, polysulfones and other tariff numbers as set forth in note 3 to chapter 39 are not listed.

39119000

92.

Plastic plates, sheets, films, foils and strips, not elsewhere specified

39219090

93.

1,2-Dichloroethane (ISO)

29031500

94.

Halogenated butyl rubber sheets, strips

40023990

95.

Other heterocyclic compounds

29349990

96.

Adhesives based on other rubber or plastics

35069190

97.

Polyamide-6,6 slices

39081011

98.

Other primary-shaped polyethers

39072090

99.

Primary Shaped, Unplasticized Cellulose Acetate

39121100

100.

Aromatic polyamides and their copolymers

39089010

101.

Semi-aromatic polyamides and their copolymers

39089020

102.

Other polyamides of primary shape

39089090

103.

Other vinyl polymer plates, sheets, strips

39201090

104.

Non-ionic organic surfactants

34021300

105.

Lubricants (containing oil or oil extracted from bituminous minerals and less than 70% by weight)

34031900

106.

Aircraft and other aircraft with an empty weight of more than 15,000kg but not exceeding 45,000kg

88024010