On Sunday, May 5, President Trump tweeted that the 10% tariffs on Section 301 list 3 goods will increase to 25% on May 10, 2019. If implemented, this may have a profound impact on many importers who have found ways to cope with the 10% additional duty but may find it difficult to remain competitive if the tariff jumps up to 25%.
In addition, President Trump tweeted that $325 billion worth of “additional goods sent to us by China remain untaxed, but will be shortly, at a rate of 25%. The Tariffs paid to the USA have had little impact on product cost, mostly borne by China. The Trade Deal with China continues, but too slowly, as they attempt to renegotiate.” This means we could be looking at a fourth list of Section 301 tariffs covering virtually all Chinese goods not currently subject to Section 301 tariffs.
Some believe that these announcements are meant to stimulate the current US-China trade negotiations and may be intended to push these talks forward more quickly. We will keep you informed of any new updates as they become available. In the meantime, if you have questions, please reach out to your Mohawk customer service representative.