Exclusion Process for List Three Tariffs Open as U.S. and China Prepare for More Trade Talks

Date: July 9, 2019

U.S. President Donald Trump and Chinese President Xi Jinping met together at the G20 Summit in Japan on June 29, where they discussed the possibility of continuing trade talks to avoid further tariffs from coming to fruition.

President Trump told President Jinping that while he wouldn’t lift Section 301 tariffs already imposed on China, he would postpone any additional tariffs while negotiations continue. Specifically, President Trump postponed tariffs on List Four goods. The office of the United States Trade Representative (USTR) held hearings near the end of June where several companies and organizations, including MEMA, testified on the impacts tariffs on China would have on U.S. businesses.

“Make no mistake about it – these proposed tariffs are a tax on the American public,” MEMA Senior Vice President of Government Affairs Ann Wilson told the chamber during the testimony.

The USTR opened a web portal on June 30 allowing businesses to request exclusions from List Three tariffs, which put a 25 percent tax on $200 billion worth of Chinese products, including automotive supplies and electronics. Those looking to be exempted will have until Sept. 30 to submit a request. A panel hosted on June 28 by the American Association of Exporters and Importers discussed the process and possible challenges in submitting an exclusion request.

“If you’re saying you can’t get the product in the United States but have no documentation, or no proof, you’re not going to get very far,” Melanie Weiland, grassroots manager for the Motor & Equipment Manufacturers Association, said at the panel.

The two nations have yet to announce when they plan to negotiate trade policy.

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