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Trump to impose 10% tariff on remaining Chinese goods

Published August 1, 2019

SHANGHAI (BRAIN) — President Donald Trump on Thursday said the U.S. will impose a 10% tariff on Chinese goods worth $300 billion in annual imports.

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The list of goods — the so-called "List 4" — includes bicycle products not previously subject to new Trump tariffs, including bike helmets and lights. The tariff will take effect Sept. 1. Besides the bike items, it hits a range of consumer goods including toys and electronics. On the news stock prices fell Thursday afternoon for retailers, toy makers, and electronics brands, including Apple. 

Helmets and lights were excluded from List 3 on safety grounds. Some other bike products were not included in List 3 because they are in the same category as other consumer goods, such as apparel and shoes, which are both included in List 4.

Bike parts and accessories that are imported under Harmonized Tariff System code 8714.99.8000 were not included in List 3, but are in List 4. That includes all parts and accessories that don't have their own specific HTS code, everything from kickstands to toe clips to axle extenders. Last year, the U.S. imported nearly $40 million worth of products under that code. Those products have a pre-existing tariff of 10%, so the total starting Sept. 1 will be 20%. 

Negotiations are underway this week between the U.S. and China in Shanghai. Trump said China President Xi Jinping has not followed through on agreements to purchase agricultural products from the U.S. and to end the sale of fentanyl to the U.S.

In June, Trump said China had agreed to those terms and said he was delaying implementation of new tariffs on List 4 as a result. In May, tariffs on List 3 were increased from 10% to 25%. Those rates were on top of existing tariffs on those products, which are mostly between 0-11%.  

Related: See How we got here: A tariff timeline and A retailer's crash course in dealing with tariffs.

 

Topics associated with this article: Tariffs

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