On October 30, 2018 President Trump announced that if his meetings with Chinese President Xi Jinping at the G-20 Summit in Argentina late November don’t go well, then he will slap a tariff on ALL remaining $257 billion worth of imports from China.
In other words “the whole enchilada” or everything that is made in China and imported into the US may be hit up to an additional 25% in tariffs.
Why is he doing this? Again, it’s not only to reduce the trade deficit, but also to get China to play fair and help the US gain equal access to the Chinese market. See my previous post here.
In my view, Trump, ever the savvy negotiator, is using the threat of this tariff as leverage to get a “great deal” from China.
Will China bow down so easily? I’m not so sure.
But from our ecommerce business perspective here’s what you need to know:
- If the meetings don’t go as planned, then the final round of tariffs would be approved in early Dec. And according to US law they will be enacted 60 days later. This would be early Feb 2019 which coincides with Chinese New Year.
- Given the duty rate in the other China Tariffs I would expect an equal 25% tariff to pass eventually. If not outright, it may be passed in stages starting at 10% and then increasing to 25%.
For some products, it’s too late and they are already covered in the previous rounds of China tariffs.
Some of you may be wondering how do I find out if my products are affected?
- Find out your HS Code or Harmonized Item Description and Coding System. Whenever you import a product, the HS code is used by US Customs to determine the duty rate of your product.
To find out the code if you don’t know it, you can ask your supplier and then check with your customs broker. - Check the Tariff lists released so far. You can find them at 80/20 Sourcing .
TIP: Use the “Find” feature to search for your HS Code quickly. - If your HS Code is listed in the list then it is liable to a +10% tariff until Dec 31, 2018. Then it will increase to a +25% tariff beginning Jan 1, 2019.
If your code is NOT listed in the lists then you’re product is not liable to any additional tariffs… yet.
I’m doing some research on US small businesses that have been affected by the China tariffs. If your business has been impacted please fill out this 5 minute survey.
We are putting together feedback to take this to US Government officials to share how these tariffs are impacting the business community. So make your voice matter and fill out this survey today.
Thanks,
Gary
PS: If you’re looking for more private label business, I have a few openings left in my coaching program before the end of the year. If you’re interested you can apply here.
