The Office of the U.S. Trade Representative (USTR) released a proposed list of tariffs covering 1,300 Chinese products with a combined value of $50 billion. “Sectors subject to the proposed tariffs include industries such as aerospace, information and communication technology, robotics, and machinery,” said the USTR in a news release.

The tariffs, a result of a Section 301 investigation, are meant as a response to a pattern of forced technology transfers, intellectual property theft and cyber business espionage. The total value of imports subject to the tariff increase is said to be commensurate with an economic analysis of the harm caused by China’s unreasonable technology transfer policies to the U.S. economy, as covered by USTR’s Section 301 investigation.

The Chinese ambassador warned the U.S. on April 2nd that China would likely retaliate with tariffs of similar scope in response to Section 301 tariffs, which was highlighted in our recent Shap Flash.   (The World Trade Organization has recently updated this information.  Please refer to list of products subject to duties by the Chinese government here.)

For a full list of the proposed products and tariffs from the USTR covering imported Chinese products, click here.

Please note:  The list published by the USTR is not a final list of products that could be subject to the 25% duty rate, and it has not been confirmed that the 25% rate will be implemented.

The USTR is accepting comments on the both the tariff provisions and the rate assessment. The tariffs will likely not take effect before June as a result of this administrative process.

Shapiro will continue to monitor the situation and provide updates as they become available.