The Office of the United States Trade Representative (USTR) announced today a list that will impose an additional 25% tariff on products imported from China worth approximately US$16 billion. This is part of the U.S. response to China’s unfair trade practices related to forced transfers of U.S. technology and intellectual property. Prior to the second batch of additional tariffs imposed under Section 301, the first batch of tariffs on approximately US$34 billion worth of imported products from China took effect on July 6.
This list contains 279 of the original 284 tariff lines on the proposed list announced on June 15. The changes to the proposed list come after USTR and the Section 301 Interagency Committee solicited and received written comments and testimony during a two-day public hearing last month. Customs and Border Protection will impose additional tariffs on products imported from China starting on August 23.
In March 2018, USTR announced the conclusions of its detailed Section 301 investigation. The investigation found that China’s actions, policies, and practices related to technology transfer, intellectual property, and innovation were unreasonable, discriminatory, and burdensome to U.S. commerce.
Specifically, the Section 301 investigation shows:
China uses joint venture requirements, foreign investment restrictions, and administrative review and licensing procedures to require or force technology transfers from U.S. companies.
China has deprived U.S. companies of the ability to set market-based conditions in licensing and other technology-related negotiations.
China controls and unfairly facilitates systematic investments in and acquisitions of U.S. companies and assets, resulting in large-scale technology transfers.
China conducts and supports cyber intrusions into U.S. commercial computer networks to obtain commercial information of commercial value without authorization.
A formal announcement on the $16 billion tariff action will be published in the Federal Register soon. As with the first tranche of additional tariffs, the announcement will announce a process by which interested persons may request the exclusion of specific products under a tariff line covered by the additional tariffs.
Final tariff list can be found here
