With the 11th round of trade negotiations between the U.S. and China in progress, U.S. Customs and Border Protection (CBP) imposed on Friday a 25 percent tariff on approximately $200 billion of goods leaving China.
The move, formally announced in the Federal Register Wednesday, increases tariffs from the current 10 percent and applies to about 5,700 categories of products. Seaborne cargo shipped from China before midnight on Thursday, when the tariff change took effect, were not subject to the new tariff rate as long as they arrive in the U.S. prior to June 1. The U.S. Trade Representative’s office (USTR) has stated the tariff increase will only apply to goods that leave China after May 10 or goods that arrive after June 1.
Trans-Pacific shipments typically take around three weeks, creating a delay in effect that could provide more negotiation time.
Chinese Vice Premier Liu He, U.S. Trade Representative Robert Lighthizer and U.S. Treasury Secretary Steven Mnuchin met for about 90 minutes on Thursday and concluded meetings on Friday morning. No final deal was announced.
“This evening, (United States Trade Representative Robert Lighthizer) and (Treasury Secretary Steven Mnuchin) met with President Trump to discuss the ongoing trade negotiations with China. The Ambassador and Secretary then had a working dinner with Vice Premier Liu He, and agreed to continue discussions tomorrow morning at USTR,” White House deputy press secretary Judd Deere said in a statement Thursday evening.
Chinese President Xi Jinping sent President Trump a letter earlier this week and President Trump indicated the two would likely speak by phone soon.
The U.S. imports approximately $540 billion in goods from China annually. With the new move Friday, around $215 billion will be subject to the 25 percent tariff and the remaining $325 billion not subject to a tariff. China currently imposes a tariff on around $110 billion of American imports and has slowed customs clearances and increased regulatory scrutiny on American exporters.
