The latest list of goods from China proposed to be subject to 25 percent Section 301 tariffs appears to hit chemicals, plastics, resins and semiconductors, according to a list of tariff subheadings released by the U.S. Trade Representative on June 15 (see 1806150003). Other affected products include cargo containers, tractors and railway equipment. Comments on the list are due July 23 and a hearing is scheduled for July 24 (see 1806190060). New tariffs on 818 other subheadings from the original list take effect July 6.

The latest list of goods from China proposed to be subject to 25 percent Section 301 tariffs appears to hit chemicals, plastics, resins and semiconductors, according to a list of tariff subheadings released by the U.S. Trade Representative on June 15 (see 1806150003). Other affected products include cargo containers, tractors and railway equipment. Comments on the list are due July 23 and a hearing is scheduled for July 24 (see 1806190060). New tariffs on 818 other subheadings from the original list take effect July 6.

Stakeholders 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. CompTIA has “no doubt that China needs to be held accountable” for unfair trade practices, said Elizabeth Hyman, executive vice president-public advocacy. “But additional tariffs are cutting off our nose to spite our face,” she said Tuesday. “Rather than using the blunt instrument of tariffs on China, more energy should be devoted to working with the U.S. Congress to develop productive solutions." China's retaliatory decision to impose 25 percent tariffs on $34 billion in U.S. imports, mirroring the administration’s Section 301 tariffs announced Friday (see 1806150030), shows China "has no intention of changing its unfair practices related to the acquisition of American intellectual property and technology," said Trump Monday. Trump directed U.S. Trade Representative Robert Lighthizer to “identify” $200 billion worth of Chinese goods for additional 10 percent tariffs.

Stakeholders 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. CompTIA has “no doubt that China needs to be held accountable” for unfair trade practices, said Elizabeth Hyman, executive vice president-public advocacy. “But additional tariffs are cutting off our nose to spite our face,” she said Tuesday. “Rather than using the blunt instrument of tariffs on China, more energy should be devoted to working with the U.S. Congress to develop productive solutions." China's retaliatory decision to impose 25 percent tariffs on $34 billion in U.S. imports, mirroring the administration’s Section 301 tariffs announced Friday (see 1806150030), shows China "has no intention of changing its unfair practices related to the acquisition of American intellectual property and technology," said Trump Monday. Trump directed U.S. Trade Representative Robert Lighthizer to “identify” $200 billion worth of Chinese goods for additional 10 percent tariffs.

New Chinese 25 percent tariffs on goods from the U.S. set to take effect on July 6 (see 1806150037) are mostly focused on meat, agriculture and cars. China said it would impose initial tariffs on those and other goods mentioned in a first list on the same date the U.S will impose its Section 301 tariffs on goods from China (see 1806150003). China said it also plans to eventually add tariffs to goods mentioned in a second list, which includes chemical products, medical equipment and energy products.

Though the Trump administration’s plan to impose Trade Act Section 301 tariffs of 25 percent on Chinese imports “may have gotten China’s attention, they’re unlikely to change China’s conduct -- and will cause significant collateral damage in the process,” a June 19 Progressive Policy Institute report said. The duties, though applied to “Chinese-origin” products, “would be paid by Americans and impose serious costs on the U.S. economy,” it said. A “smarter strategy” to “confront China’s mercantilism” would be for the U.S. “to work more closely with its trade partners” to curb the allegedly “abusive” trade behavior, the report said. “China’s unfair policies and practices seriously threaten innovative businesses in many countries, and they -- and their governments -- can be key allies in pushing back.” But it’s difficult to build a coalition against China when the administration “needlessly antagonizes allies,” as it did when it imposed steel and aluminum tariffs against its allies, it said. The U.S. also needs to “speak with a single voice” in “focused, results-oriented” trade negotiations with China, the report said. The administration “should designate a single, high-level official to negotiate with China about core trade issues related to China’s unfair innovation practices,” it said. “This official should also actively seek cooperation from allies on those issues.”

Though the Trump administration’s plan to impose Trade Act Section 301 tariffs of 25 percent on Chinese imports “may have gotten China’s attention, they’re unlikely to change China’s conduct -- and will cause significant collateral damage in the process,” a June 19 Progressive Policy Institute report said. The duties, though applied to “Chinese-origin” products, “would be paid by Americans and impose serious costs on the U.S. economy,” it said. A “smarter strategy” to “confront China’s mercantilism” would be for the U.S. “to work more closely with its trade partners” to curb the allegedly “abusive” trade behavior, the report said. “China’s unfair policies and practices seriously threaten innovative businesses in many countries, and they -- and their governments -- can be key allies in pushing back.” But it’s difficult to build a coalition against China when the administration “needlessly antagonizes allies,” as it did when it imposed steel and aluminum tariffs against its allies, it said. The U.S. also needs to “speak with a single voice” in “focused, results-oriented” trade negotiations with China, the report said. The administration “should designate a single, high-level official to negotiate with China about core trade issues related to China’s unfair innovation practices,” it said. “This official should also actively seek cooperation from allies on those issues.”

Republicans and Democrats on the Senate Finance Committee criticized Commerce Secretary Wilbur Ross on June 20 over the steel and aluminum tariffs and the implementation of granting exclusions for certain imports subject to those tariffs. Democrat Sen. Claire McCaskill, who described a nail maker in her home state of Missouri who is laying off more than half its 500-person workforce as its inputs' cost increases, told him: "it appears to me a chaotic and, frankly, incompetent manner you're picking winners and losers." Only Sen. Sherrod Brown, D-Ohio, asked supportive questions during the hearing on tariffs.

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.