Chinese tariffs

Published in the February 2019 issue of Washington Update

An increase in tariffs on Chinese goods is under consideration. These Section 301 tariffs began last year with a 10 percent tariff on $34 billion of Chinese goods, with retaliatory Chinese tariffs of $34 billion on U.S. goods and increasing tariffs on U.S. autos to 40 percent while lowering tariffs to 15 percent on vehicles from the rest of the world. In August 2018, the U.S. added $16 billion of Chinese goods to the tariff list followed by similar retaliatory tariffs by China. In September, a third tranche included a 10 percent tariff on Chinese light vehicle parts and components, as well as automotive tooling and molds, with the threat of an increase to 25 percent by the end of March if progress has not been made in ongoing negotiations.

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