Retailers immediately blasted President Donald Trump’s threats to impose new Trade Act Section 301 tariffs of 10 percent on an additional $200 billion worth of goods from China. Trump's threats are a “reckless escalation” of the U.S. trade war with China and should serve as “the latest reminder that Congress must step in and exert its authority on trade policy,” said National Retail Federation CEO Matthew Shay Monday.

Importers should be reviewing options toward reducing the impact of any of the Section 301 tariffs on goods from China, Baker & McKenzie lawyer Ted Murphy said in a June 19 blog post. President Donald Trump on June 18 announced plans for 10 percent duties on $200 billion worth of goods from China (see 1806180058) if China moves forward on planned retaliations to the initial Section 301 tariffs (see 1806150028). "While there is still time for the two countries to reach a negotiated settlement and avoid a trade war (the first tranche of duties does not go into effect until July 6th), that does not appear likely, at this point," Murphy said.

The Office of the U.S. Trade Representative posted information on submitting public comments on the new list of products proposed for Section 301 tariffs. The notice again lists the products from China that will see new tariffs starting July 6 (see 1806150003) but doesn't spell out the process for requesting product exclusions. Those details will come in a separate notice, USTR said. The agency's notice also "creates a new Chapter 99 subheading for entry purposes (entries of articles classified in the tariff subheadings identified in Annex A have to use the new Chapter 99 classification as a secondary classification, so the additional 25% duty can be assessed) and addresses foreign trade zone admissions," Baker & McKenzie lawyer Ted Murphy said said in a June 18 blog post

A list of U.S. goods set to become subject to Chinese retaliatory tariffs includes some medical devices and chemicals of Chapter 29. In response to U.S. Section 301 tariffs on some $34 billion in goods set to take effect July 6, China will implement a 25 percent duty on 545 tariff lines that same day, it said in a statement. No pharmaceutical products of chapters 29 and 30 or medical devices of Chapter 90 are included in that first list. But a second list of suspended tariffs, mirroring a list put out by the U.S. of tariffs that will take effect at a later date after a period for comments, includes some products of Harmonized Tariff Schedule headings 2903, 2926 and 2934, as well as medical devices and equipment of subheadings 9018.13, 9018.19, 9018.50, 9018.90, 9022.14 and 9022.90. According to an informal translation, China said in its statement that the implementation date for tariffs on those goods will be announced separately.

The Office of the U.S. Trade Representative posted information on submitting public comments on the new list of products proposed for Section 301 tariffs. The notice again lists the products from China that will see new tariffs starting July 6 (see 1806150005) but doesn't spell out the process for requesting product exclusions. Those details will come in a separate notice, USTR said. The agency's notice also "creates a new Chapter 99 subheading for entry purposes (entries of articles classified in the tariff subheadings identified in Annex A have to use the new Chapter 99 classification as a secondary classification, so the additional 25% duty can be assessed) and addresses foreign trade zone admissions," Baker & McKenzie lawyer Ted Murphy said in a June 18 blog post.

Importers should be reviewing options toward reducing the impact of any of the Section 301 tariffs on goods from China, Baker & McKenzie lawyer Ted Murphy said in a June 19 blog post. President Donald Trump announced plans for 10 percent duties on $200 billion worth of goods from China (see 1806180058) if China moves forward on planned retaliations to the initial Section 301 tariffs. "While there is still time for the two countries to reach a negotiated settlement and avoid a trade war (the first tranche of duties does not go into effect until July 6th), that does not appear likely, at this point," Murphy said. New tariffs on medical devices from China will take effect on July 6 (see 1806150036).

That the Office of the U.S. Trade Representative removed finished TVs from China Friday from the final list of products exposed to Trade Act Section 301 tariffs of 25 percent (see 1806150030) came “much to the satisfaction” of manufacturers, suppliers and retailers, said Paul Gagnon, IHS Markit executive director-research and analysis. For the past two months, most Chinese TV brands and panel makers “have been very concerned” about the possible tariffs because “it would have been challenging to quickly change production supply chains without disruption and additional cost,” said Gagnon. “Section 8539" of products remained on the final tariffs list, and that includes some TV components like tuners and printed circuit boards that “may impact assembly plans in the US,” he said: “The impacts of the increased tariffs are still being evaluated on TV components used in the assembly of TVs.” Manufacturers that “maintain US assembly of products will not have to worry about increased panel prices due to tariffs, as LCD panels for use in TV applications were excluded” from the final list as well, said Gagnon. “But the higher cost for some components will edge into profit margins.” IHS is maintaining its North American TV demand forecast at about 42 million units a year, said Gagnon. “The forecast was at significant risk had the tariffs been passed.”

International Trade Today is providing readers with some of the top stories for June 11-15 in case they were missed.

Despite repeated lobbying trips from Commerce Secretary Wilbur Ross, the Senate passed a version of the defense authorization bill June 18 that includes an amendment designed to retain the seven-year export ban on Chinese telecommunications equipment manufacturer ZTE. However, the way the amendment is written, the Commerce Department would retain the discretion to allow ZTE to continue importing semiconductors from U.S. sources.

Life Sciences Trade Alert is providing readers with some of the top stories for June 11-15 in case they were missed.