President Trump tweeted the following message this afternoon.
President Trump’s announcement is a response to China’s announcement earlier in the day that China would place a tariff on roughly $75 billion worth of U.S. goods. The key points to capture from Trump’s announcements are the following:
Products that have thus far been subject to the Section 301 list 1, 2, and 3 tariffs of 25% will now face an increase of 5% starting on October 1, 2019. Our assumption is that the October 1, 2019 increase will be based on entry date. Importers of products on list 1, 2, or 3 should be prepared to pay a total tariff of 30% in addition to the normal tariff that typically applies to to the product.
Products that are on list 4 will see their additional tariff increased from 10% to 15%. Note that President Trump does not mention the list 4 split into list 4A and list 4B. The assumption is that this increase to 15% will apply to both the list 4A and list 4B products.