The Chinese government announced it would proceed with retaliatory tariffs on U.S. products in response to the Trump Administration’s imposition of 10 percent tariffs on $200 billion worth of Chinese imports, including a variety of hardwood and hardwood products. Retaliatory tariffs will be imposed on $60 billion worth of U.S. exports at either a 5 percent or a 10 percent rate, starting the same day – Monday, September 24, 2018, starting at 12:01 a.m.
China’s latest list of retaliatory tariffs does not appear to be changed from the proposed list released in early August. What has changed is the tariff rates on hardwoods which have reduced from a high of 25 percent proposed in August to 10 percent for most hardwood lumber and logs. You may view the list of agricultural products included in both lists here. (Forest product numbers begin with 44 and start on page 11.) Initial review indicates that tariffs will be applied as follows:
- A 10 percent rate would apply to products originally slated for tariffs of 20 percent and 25 percent
- A 5 percent rate would apply to products originally slated for tariffs 10 percent tariff and 5 percent
The Chinese government’s announcement did not clearly indicate if the Chinese tariffs will increase on January 1, 2019, to match U.S. planned rate increase from 10 percent to 25 percent. However, separate statements indicate that, “if the United States insists on further increasing its tariff rate, the Chinese side will respond accordingly, with related matters released separately,” perhaps hinting that China will increase rates on these products back to the levels proposed in the August 3rd draft if the U.S. moves forward with increases.
Sources: NHLA and Hardwood Federation