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Letter From CEO (Jamie Rodgers): Potential for More Tariffs

Importers who have products coming from China may soon have more tariffs heading their way. In the last two years, considerable tariffs on more than $200 billion worth of products from China have been put in place, leading to years of record collections in duties by U.S. Customs.

In the wake of the coronavirus pandemic, the US government is considering going to this policy again as a method to pressure supply chains to move out of China. The 10% or 25% tariffs that have been rolled out since the middle of 2018 have made firms reconsider re-shoring production back to the US or to other countries.

The new tariffs could be either new tariffs on products not yet hit by them, or possibly increased duties on already existing section 301 tariffs. Any importer, whether or not their products have been subject to new tariffs, will need to keep a close eye on announcements to be sure they remain in compliance.

In January, the US and China hashed out what was called the “Phase One Trade Deal,” a beginning of a larger deal that was aimed at resolving years of differences between the US and Chinese governments on one of the world’s largest trading relationships. It is not immediately clear if new tariffs would affect the implementation of this deal.

If implemented under the same Section 301 law, then any new tariffs would be eligible to be claimed through drawback refunds if the products are eventually exported or destroyed. 

An escalation of the ongoing Trade War between the USA and China is sure to have lasting effects on any company whose supply chain passes through China.

If you’d like to discuss how to remain in compliance and discuss your options for U.S. Customs compliance, exclusions, or duty drawback, please contact www.jmrodgers.com.

Sincerely,

James Rodgers, CEO

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Jon Sabel is the marketing director at J.M. Rodgers Co., Inc. Jon enjoys sharing updates about the latest news in supply chain and logistics with customers and followers.