The Office of the U.S. Trade Representative announced that the Section 301 duty to be imposed on $200 billion worth of Chinese goods, including fasteners, will be 25% instead of 10% announced on July 10 (see list below).

The hike in the tariff rate was prompted by President Donald Trump, who directed U.S. Trade Representative Robert Lighthizer to increase it.

“The increase in the possible rate of the additional duty is intended to provide the Administration with additional options to encourage China to change its harmful policies and behavior and adopt policies that will lead to fairer markets and prosperity for all of our citizens,” Lighthizer stated.

If implemented, the 25% duty on imports from China would be the third round of Section 301 tariffs on Chinese goods imposed by the Trump administration. Trump has said the tariffs are in response to China’s unfair trade practices.

China announced it would hit about $60 billion worth of U.S. exports with new tariffs in response.

“China is fully prepared and will have to retaliate to defend the nation’s dignity and the interests of the people, defend free trade and the multilateral system, and defend the common interests of all countries,” the Chinese Ministry of Commerce stated. “The carrot and stick tactic won’t work.”

The U.S. trade deficit hit $291 billion in the first half of 2018 despite President Trump’s efforts to reduce it, and is on track to be the highest in a decade.

Fasteners are listed among the 6,031 tariff codes that would be taxed if the 25% duties are implemented by the U.S. The tariff appears to apply to nearly all fasteners imported from China.

The Office of the U.S. Trade Representative (USTR) list includes:

7318.11.00 – Iron or steel, coach screws
7318.12.00 – Iron or steel, wood screws (o/than coach screws)
7318.13.00 – Iron or steel, screw hooks and screw rings
7318.14.10 – Iron or steel, self-tapping screws, w/shanks or threads less than 6 mm in diameter
7318.14.50 – Iron or steel, self-tapping screws, w/shanks or threads 6 mm or more in diameter
7318.15.20 – Iron or steel, bolts and bolts & their nuts or washers, imported in the same shipment
7318.15.40 – Iron or steel, machine screws (o/than cap screws), 9.5 mm or more in length and 3.2 mm in diameter
7318.15.50 – Iron or steel, threaded studs
7318.15.60 – Iron or steel, screws and bolts, nesoi, having shanks or threads less than 6 mm in diameter
7318.15.80 – Iron or steel, screws and bolts, nesoi, having shanks or threads 6 mm or more in diameter
7318.19.00 – Iron or steel, threaded articles similar to screws, bolts, nuts, coach screws & screw hooks, nesoi
7318.21.00 – Iron or steel, spring washers and other lock washers
7318.22.00 – Iron or steel, washers (o/than spring washers and other lock washers)
7318.23.00 – Iron or steel, rivets
7318.24.00 – Iron or steel, cotters and cotter pins
7318.29.00 – Iron or steel, nonthreaded articles similar to rivets, cotters, cotter pins, washers and spring washers

Nuts (HS code 73181600) from China were originally included in the first round of 301 tariffs, but were removed from the list before those tariffs were implemented.

USTR is seeking public comment and will hold a public hearing regarding this latest round of tariffs. Comments must be submitted by the following schedule:

August 13: Due date for filing requests to appear at the public hearing, and for filing pre-hearing submissions.

August 20-23: Public hearing at the U.S. International Trade Commission.

September 6: Due date for written comments.

September 6: Due date for post-hearing rebuttal comments.

USTR prefers electronic submissions made through the Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments in sections D and F below. The docket number is USTR-2018-0026.

For questions about the ongoing investigation or proposed action, contact Arthur Tsao, Assistant General Counsel, or Justin Hoffmann, Director of Industrial Goods. Tel: 202 395-5725

For questions on customs classification of products, contact Traderemedy@cbp.dhs.gov.