Shap Flash

We are sorry to report that the (dreaded) day has finally arrived…   

In the Administration’s continued attempt to bolster U.S. manufacturing, Section 301 List 3 tariffs have been finalized—and are set to take effect next Monday, September 24^th. Affected importers should expect to pay an additional 10% in tariffs through the remainder of the year, with a likely adjustment to 25% in early 2019 should China not respond to negotiations. This staged increase is said to be designed to give importers an opportunity to source elsewhere.

We understand that over 300 product categories including but not limited to car seats for children, certain chemicals and Bluetooth electronics have been removed from the original list. The full and updated list can be found by clicking here.

It is important to note that the tariffs will begin to be applied on September 24th at 12:01 AM based on either the entry date or date or arrival. Hence, if either the date of arrival or entry date occurs on or after September 24th then additional tariffs will apply.

What can you expect next in this game of chicken?  

In response to the imposition of List 3 tariffs, we are hearing that China plans to enact tariffs on an additional $60 billion worth of U.S. goods, essentially levying tariffs on all products imported from the U.S. Should China commit to this retaliation, President Trump seems prepared to impose tariffs on an additional $267 billion worth of Chinese imports. Pundits are already referring to these tariffs as “List 4”.

Shapiro will continue to monitor the situation and provide updates as they become available, as well as guidance on any exclusion process that becomes available.