Logistics Alert: Update to International Chinese Shipping Tariffs

Posted - September 28, 2018

Mollie Bailey, Transplace-2By: Mollie Bailey, Director, International, Transplace

It can be a confusing time for the international shipping community due to the U.S. government’s implementation of new tariffs on Chinese goods entering America. As these rounds of regulations have unfolded over the last few months, we’ve shared details around what products have been included in the first two waves of tariffed goods and what these changes mean for shippers. Recently, the United States Trade Representative (USTR) announced the implementation of additional tariffs – which was included in a new third list. Below is a full timeline of events and a comprehensive list of the updated regulations.

Earlier Tariffs Released (still actively being imposed)

List Number One:

On July 6, 2018, the first list was introduced and is comprised of 818 products with a total import value of $34 billion. These impacted goods are subject to a 25% increase upon arrival into the U.S. Affected goods include:

  • Engines and motors
  • Construction
  • Drilling and agricultural machinery
  • Machines for working minerals, glass, rubber or plastic
  • Rail locomotives and rolling stock
  • Motor vehicles and motorcycles
  • Helicopters and airplanes
  • Testing, measuring and diagnostic instruments and devices

List Number Two:

On August 23, 2018, the second list went into effect that includes 284 tariff lines with a total import value of approximately $16 billion. These impacted goods are subject to a 25% increase upon arrival into the U.S. Affected goods include:

  • Plastics/plastic products
  • Industrial machinery
  • Machinery for working stone, ceramics, concrete, wood, hard rubber or plastic and glass
  • Cargo containers
  • Tractors
  • Optical fibers

List Number Three:

On September 24, 2018, a third list was announced which includes 5,745 products with a total an import value of $200 billion. These impacted goods now have a 10% increase upon arrival into the U.S. and will increase to 25% starting January 1, 2019. Affected goods include:

  • Agricultural products – such as fruits, vegetables and honey
  • Consumer goods – including metal and wood furniture
  • Industrial items – such as chemicals and liquefied natural gas
  • Meats and fish
  • Vehicle parts – including axles, driving shafts and radiators

Also, in the most recent USTR announcement was information about products that were originally supposed to be included in this third round of imports that have been removed from the list – such as “certain consumer electronics products such as smart watches and Bluetooth devices; certain chemical inputs for manufactured goods, textiles and agriculture; certain health and safety products such as bicycle helmets and child safety furniture such as car seats and playpens.”[1]

How has your supply chain been impacted by tariffs?

[1] https://ustr.gov/about-us/policy-offices/press-office/press-releases/2018/september/ustr-finalizes-tariffs-200