Shreveport, LA – President Trump just announced that beginning Sept. 1, he will impose a 10-percent additional tariff on virtually all of the remaining $300 billion worth of goods imported from China that are not already subject to Section 301 tariffs.
Indications are that the 10-percent tariff will be applied on the entire list of 3,805 full and partial subheadings announced in May. This list covers all apparel, footwear, and manufactured textile products, but excludes pharmaceuticals, certain pharmaceutical inputs, select medical goods, rare earth materials, and critical minerals.
“Our representatives have just returned from China where they had constructive talks having to do with a future Trade Deal. We thought we had a deal with China three months ago, but sadly, China decided to re-negotiate the deal prior to signing. More recently, China agreed to buy agricultural product from the U.S. in large quantities, but did not do so. Additionally, President Xi said that he would stop the sale of Fentanyl to the United States, but this didn’t happen,” said President Trump. He later told reporters he’s “not concerned at all” about the negative reaction from some markets.
Trump later said, “We look forward to continuing our positive dialog with China on a comprehensive Trade Deal, and feel that the future between our two countries will be a very bright one.” Next steps may not take place until negotiators regroup in Washington D.C. in early September. Those talks are still planned to move ahead as scheduled.
Economists believe there will be some proportionate reaction from China, meaning more tariffs on imports from the U.S. until a comprehensive trade deal covering all products is made between the two countries.
The U.S. Trade Representative’s Office said it will release the final, official list of products to receive the higher taxes in the coming days. In the meantime, with only a month to go before the new tariffs are imposed, companies should explore their supply chain needs or legal options available for reducing or eliminating their exposure. They should also carefully examine export dates and projected arrival dates to conform with the Sept. 1 tariff start date.
Privately owned-and-operated, AFS Logistics, founded in 1982 in Shreveport, La., has been a pioneer in the transportation industry by providing spend management for all modes of transportation from mid-size companies to Fortune 100. With over $13B of transportation spend under management, AFS provides best-in-class transportation rates and service to over 150 countries worldwide.