President Trump issued a couple of Twitter messages over the weekend stating that negotiations with China are moving too slowly and as a result, duties on goods under List #3 will go from the current 10% to 25% this coming Friday, and soon after more goods worth approximately $325 billion will also be subject to 25% duties. This appears to be setting a deadline for negotiations either to be done or at least progress drastically by this Friday.
The items currently excluded from these sanctions, such as wearing apparel and footwear would not be affected by an increase from 10% to 25% for List #3. However, if a fourth group of sanctions is added, the remainder of the classifications exempted up to now, could definitely be included and affected.
In order for Customs to increase duties under Section 301, the U.S. Representative must first issue a formal announcement in the Federal Register.
A Chinese delegation is scheduled to come to the U.S. this week to continue the ongoing trade negotiations. We will keep you informed as this situation develops further.
