Tariffs on All Remaining Imports from China to Begin Sept 1 along with the exemptions with no grace period

President Trump has announced that beginning Sept. 1 he will impose a 10 percent additional tariff on virtually all of the remaining $300 billion worth of goods imported from China that are not already subject to Section 301 tariffs (List 4 goods).

Initial indications are that the 10 percent tariff, which would be in addition to any other applicable tariffs, will be applied on the entire list (See attached “USTR 301 Proposed List 4”) of 3,805 full and partial subheadings announced in May. The Office of the U.S. Trade Representative said at that time that this list covers all apparel, footwear, and manufactured textile products, among others, but excludes pharmaceuticals, certain pharmaceutical inputs, select medical goods, rare earth materials, and critical minerals. A Federal Register notice providing additional clarifying details is expected shortly.

Based on experience with List 3 goods, it is not expected that requests to exclude specific products from List 4 will be accepted while the tariff rate remains at 10 percent. If this rate is increased to 25 percent, which could happen if the administration deems it necessary to gain additional leverage in the ongoing U.S.-China trade talks, an exclusion process could be established.

The Office of the U.S. Trade Representative has issued a notice stating that the additional 10 percent tariff on List 4 imports from China will not be imposed on certain products that were removed for health, safety, national security, and other factors. A list of these products is available here. (See attached “USTR 301 Products Removed from List 4)
Additionally, the tariff will be delayed until Dec. 15 for products on List 4B. Those products are in the following tariff groups: cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing.
For products on List 4A, the tariff will go into effect Sept. 1. USTR also intends to conduct an exclusion process for products subject to the tariff.
- USTR List 4A (effective Sept. 1, 2019)  (see attached “List 4A Effective Sept 1, 2019”)
- USTR List 4B (effective Dec. 15, 2019)  (see attached “List 4B Effective Dec 15, 2019”)

The following additional details concerning the Section 301 additional 10 percent tariff that will be imposed on List 4 goods imported from China have been made available by the Office of the U.S. Trade Representative.
- The tariff on List 4A goods (see attached “List 4A Effective Sept 1, 2019”) will be applicable to products entered or withdrawn from warehouse for consumption on or after 12:01 a.m. EDT on Sept. 1. Such goods must be entered under HTSUS 9903.88.15.
- List 4A includes HTSUS numbers for which China’s share of U.S. imports from the world is less than 75 percent.
- The tariff on List 4B goods (see attached “List 4B Effective Dec 15, 2019”) will be applicable to products entered or withdrawn from warehouse for consumption on or after 12:01 a.m. EDT on Dec. 15. Such goods must be entered under HTSUS 9903.88.16.
- List 4B includes HTSUS numbers for which China’s share of U.S. imports from the world is 75 percent or greater.
- 25 HTSUS numbers (See attached “USTR 301 Products Removed from List 4) proposed for inclusion on List 4 have been removed based on health, safety, national security, and other factors.
- Any List 4A or 4B product eligible for admission under domestic status that is subject to the 10 percent tariff and admitted into a U.S. foreign-trade zone on or after the effective date of that tariff may only be admitted as privileged foreign status.
- The 10 percent tariff does not apply to List 4A or List 4B goods for which entry is properly claimed under a provision of HTSUS Chapter 98, except for goods entered under HTSUS 9802.00.40, 9802.00.50, 9802.00.60, and 9802.00.80. For HTSUS 9802.00.40, 9802.00.50, and 9802.00.60, this tariff applies to the value of repairs, alterations, or processing performed abroad. For HTSUS 9802.00.80, the tariff applies to the value of the article less the cost or value of such products of the U.S.