Christmas came early for many U.S. businesses, but not for the fastener industry.
On August 13 the Trump administration delayed imposing a 10% import tariff on electronics and other consumer goods, Reuters reports.
“We’re doing this for the Christmas season, just in case some of the tariffs would have an impact on U.S. customers” President Donald Trump told reporters.
The decision came less than two weeks after Trump imposed a 10% tariff on $300 billion in Chinese imports starting September 1. The administration is still moving forward with 10% tariffs on much of the $300 billion of imports, including all iron and steel nuts (HTS subheading 7318.16.00) imported from China. The United States Trade Representative published a 122-page list of products that will face tariffs next month.
“The delay in the tariffs that had been scheduled to start next month provides some relief to retailers,” Reuters reports. “Although most stores would have stocked their holiday merchandise before the earlier September deadline, some might have faced the tariffs for fill-in orders late in the holiday shopping season.”
The tariff will be delayed to December 15.
The 21-page-list of products that won’t get hit with tariffs until December includes baby monitors and strollers, microwaves, instant print cameras, doorbells, high chairs, musical instruments, ketchup dispensers, baby diapers, fireworks, sleeping bags, nativity scenes, fishing reels, paint rollers and food products, according to Reuters.
Products that face the tax include live animals, dairy products, skis, golf balls, contact lenses, motorcycle engines, lithium ion batteries, snowblowers and various types of steel, including nuts.
USTR said it intends to conduct an exclusion process for products subject to the additional tariff. Additional information is expected to be published in the Federal Register.
Trump hiked 10% Section 301 tariffs on $200 billion of bolts, screws and other fasteners, as well as other select goods, manufactured in China to 25% on May 10. In response, U.S. fastener importers raised prices. Importers also are looking to source fasteners from other countries.
Trump’s original 10% duty on fasteners from China was applied September 24, 2018.
The Office of the U.S. Trade Representative (USTR) announced a tariff exclusion request process for Section 301 tariffs in July. USTR will accept exclusion requests until Sept. 30, 2019. Any exclusions granted will be retroactive to Sept. 24, 2018, when the duties were first put in place. The exclusion will last for a period of one year after it has been granted.
To submit a Section 301 exclusion request, requesters must first register on the portal at http://exclusions.USTR.gov.
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