U.S. raises tariffs to 25%, China vows retaliation

President Trump on May 10 made good on his decision to increase tariffs from 10% to 20% on $200 billion worth of Chinese goods, following setbacks in ongoing negotiations between the U.S. and China. The new tariffs are expected to be met with retaliatory measures from China.

The tariffs cover a wide array of industrial and consumer goods (Section 301 List 3), including minerals used in manufacturing, some metal castings, auto parts, air conditioners, televisions, and trailers, to name just a few. The castings which face increased tariffs are located primarily in HTS Chapters 73,74, 83, and 84.

The two countries are trying to reach an agreement to address U.S. concerns about Chinese business practices, including intellectual property theft and state-subsidized companies. Until last weekend, it appeared a deal was in sight. But U.S. officials said this week that China had backtracked on its earlier commitments.

The formal notice announcing the tariff hikes also states that the U.S. Trade Representative will establish a formal exclusion request process for products on List 3.  While negotiations are set to resume today, the president has threatened to impose a new 25% duty on $325 billion worth of additional Chinese imports. This list (List 4) has not been posted yet.

AFS will continue to provide updates on new developments surrounding the tariffs, ongoing negotiations, and a possible List 4.  For more information, please contact Stephanie Salmon in the AFS Washington Office at or 202-452-7135.