USTR Announces Additional $200 billion In Tariffs

On Tuesday, the United States Trade Representative (USTR) announced an additional $200 billion in Chinese products will be subject to 10 percent tariffs pursuant to the Section 301 investigation of China’s trade practices. This latest escalation came after China implemented its retaliation for the $34 billion in U.S. tariffs that went into effect July 6.

The latest list of tariffs affects a wider range of products than the previous lists. The new list names items such as luggage, handbags, shampoo and a variety of other consumer products, including some product categories sold within the promotional products industry such as hats and other apparel. The full USTR statement, including a complete listing of goods imported from China that will be included in the tariffs, is available here.

The new tariffs will not go into effect immediately. They will follow the same regulatory procedure as the previous Section 301 tariffs. That process includes a request for written comment, a public hearing and a post-hearing request for rebuttals.

PPAI is on the record opposing any tariff proposals. Due to the increase in consumer prices that results when tariffs are applied to products, tariffs are effectively a tax on consumers. PPAI and several other groups believe imposing tariffs on America’s most important trading partners will not address the issues related to the unfair trade practices that are currently being investigated. The tariffs could further add to the risk already being faced by American workers whose jobs rely on internationally traded products—products that, once brought to the U.S., are processed and sold by American workers. Adding tariffs may make it more difficult to sell American goods in the global economy, specifically in the countries where the tariffs are being imposed.

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