Trump's new tariff comes into effect at lower than expected rate - BBC

Importers and trade compliance professionals are advised to prepare for new tariffs on a significant portion of Chinese imports, following an announcement by President Donald Trump. Effective September 1, 2019, a new 10% tariff will be imposed on an additional $300 billion worth of goods originating from China. This latest measure expands upon existing tariffs already in place, marking a continued escalation in trade tensions between the United States and China.

This new tariff impacts a wide array of products, affecting numerous sectors and supply chains. Goods subject to the additional 10% duty include various food items, a broad range of consumer products, and industrial equipment. This is in addition to the 25% tariffs already levied on $250 billion worth of Chinese imports. Businesses, particularly retailers like Walmart, Target, and Best Buy, have expressed concerns about the potential for increased costs to be passed on to American consumers. Technology companies, such as Apple, Dell, and HP, have already begun exploring options to shift some of their production out of China in anticipation of such measures.

The announcement came shortly after trade negotiations in Shanghai concluded with little apparent progress. President Trump indicated that the new tariffs are intended to pressure China into making concessions, specifically citing a desire for China to purchase more American agricultural products and to halt the sale of fentanyl to the United States. He also stated that the tariff rate could potentially be raised above 25% if deemed necessary. The Office of the United States Trade Representative (USTR) is expected to release detailed lists of the specific products that will be subject to these new tariffs.

Given these developments, importers, customs brokers, and trade compliance officers should take immediate steps to assess the potential impact on their operations. It is crucial to review current supply chains to identify products originating from China that may fall under the scope of these new tariffs. Companies should also evaluate the financial implications, including potential increases in landed costs and adjustments to pricing strategies. Staying informed through official announcements from the Office of the United States Trade Representative (USTR) and U.S. Customs and Border Protection (CBP) will be vital for understanding the precise scope and implementation details of these tariffs.