10% tariffs take effect Sept. 24, then rise to 25% Jan. 1, 2019
WASHINGTON- The U.S. Trade Representative’s office on Monday finalized an additional $200 billion in tariffs on Chinese-made goods including furniture that would initially be subject to a 10% tariff but that would eventually rise to 25% Jan. 1, 2019.
The announcement brings clarity to an issue that the industry has anticipated mostly with concern due to the impact such tariffs could ultimately have on their businesses and consumers over the long term.
The move is the administration’s way of addressing the theft of American intellectual property and forced transfer of American technology. The initial 10% tariffs on furniture and bedding take effect Sept. 24, then rise to 25% in January.
The final list represents the administration’s third round of tariffs on Chinese made goods, falling on top of an additional $50 billion on two initial rounds that took effect earlier this summer.
The third round contains 5,745 full or partial lines of the original 6,033 lines of goods facing tariffs first announced July 10. At a first glance, it appears that most wood and upholstered furniture and bedding remains on the list. See the final list.
The latest round also follows a six week public comment period that included a series of hearings at the USTR office in Washington from Aug. 20-27. See related story and comments from the industry at the following link.
Related story: Youth products industry weighs in with USTR on tariff issue
The 297 items removed from the list include certain consumer electronics such as smart watches and Bluetooth devices; certain chemical inputs for manufacturered goods, textles and agriculture; certain health and safety products such as bicycle helmets and child safety furniture including carseats and playpens.
Of the total $250 billion in tariffs, the USTR issued the following statement.
“Unfortunately, China has been unwilling to change its policies involving the unfair acquisition of U.S. technology and intellectual property. Instead, China responded to the United States tariff action by taking further steps to harm U.S. workers and businesses. In these circumstances, the President has directed the U.S. Trade Representative to increase the level of trade covered by the additional duties in order to obtain elimination of China’s unfair policies. The Administration will continue to encourage China to allow for fair trade with the United States.”