Tariffs On Chinese Goods Still In Flux Latest Developments On List 3 Exclusions And Pending Tariff Increase

In spite of a short-term reprieve from additional tariffs on select products, trade uncertainty under the Trump administration continues for U.S. companies that do business with China.

After two recent increases affecting nearly 6,000 Chinese goods–the List 1 items and the List 2 items–the Trump administration planned to raise tariffs on List 3 items as of March 2, 2019 from 10% to 25%. That increase did not take place and has been on hold indefinitely, announced President Trump, while the U.S. continues trade negotiations with China.

Congress Steps In

The administration's effort to impose additional tariffs has been further complicated by Congress, which directed the Office of the U.S. Trade Representative (USTR) in mid-February to implement a "product exclusion process" for List 3 items under Section 301 of the Trade Act of 1974. In a statement (PDF), Congress explained that it intended to require the USTR to establish a process to request exclusion from the