President Trump announced on 29 June following a meeting with mainland Chinese President Xi Jinping that the United States will suspend plans to impose additional tariffs of up to 25 percent on so-called List 4 goods from mainland China, which have a current import value of approximately US$300 billion. Trump also vowed to relax the restrictions currently in place on U.S. exports to mainland Chinese telecommunications giant Huawei but he did not provide specific details on this commitment.

President Trump announced on 29 June following a meeting with mainland Chinese President Xi Jinping that the United States will suspend plans to impose additional tariffs of up to 25 percent on so-called List 4 goods from mainland China, which have a current import value of approximately US$300 billion.

The United States and mainland China have been negotiating an agreement aimed at resolving issues such as forced technology transfer, intellectual property rights, currency and agriculture. Negotiations broke off in May after it seemed an agreement was close at hand, and both sides blamed the other for the collapse of the talks. The United States responded by increasing additional tariffs on List 3 goods (which have an import value of US$200 billion) from 10 percent to 25 percent as of 10 May and launching a process to identify goods to include in List 4, which the president had also threatened to hit with additional tariffs of 25 percent.

However, Trump has now said that the United States “won’t be adding” tariffs on List 4 goods and instead will “work with China on where we left off, to see if we can make a deal.” He added that “for at least the time being, we’re not going to be lifting” tariffs on List 1, List 2 and List 3 goods from mainland China. Trump also vowed to relax the restrictions currently in place on U.S. exports to mainland Chinese telecommunications giant Huawei but the administration has not yet provided additional details on this commitment.

At the same time, the process for seeking product-specific exclusions from the additional tariff on List 3 goods opened on 30 June and all such requests are due by 30 September. Companies that import goods on this list should seek exemptions, which, if granted, will be effective for one year and retroactive to 24 September 2018, meaning refunds of tariffs already paid can be obtained.

(2019-07-02 Source: HKTDC)