USTR increases Section 301 tariffs on Chinese imports; proposes new tariffs

Jun 24, 2019

Since my last report, the U.S.-China trade negotiations that were widely expected to move forward suffered a serious setback. President Trump, unhappy with the progress, directed the United States Trade Representative (USTR) to increase tariffs from 10 percent to 25 percent on products covered by the September 2018 action resulting from current 301 investigations into China’s unfair trade practices. He also proposed a new round of tariffs if China refuses to honor commitments made over the course of the negotiations. 

Here’s a timeline describing what happened in May from Markets Insider:

May 5: After apparent progress in talks, the United States accuses China of reneging on past trade commitments. The president threatens to raise tariff rates and to place duties on another $300 billion worth of Chinese goods.

May 10: President Trump follows through with those threats, increasing import taxes to 25 percent from 10 percent on about $200 billion worth of products from China. Negotiations stall, and the United States reportedly gives China a three- to four-week deadline for a deal.

May 13: China retaliates against the U.S. by announcing it will raise tariff rates on $60 billion worth of American products on June 1.

May 15: The president signs an executive order barring American companies from using telecommunications gear from foreign adversaries that officials declared a threat to national security. He also adds Huawei and dozens of other Chinese companies to the U.S. “Entity List.”

May 21: President Xi Jinping of China calls on China to begin a new “long march,” a potential signal that the country is gearing up for a prolonged fight with the United States.

May 22: President Xi visits one of the largest suppliers of rare-earth elements in the world, located in Ganzhou, China. The move was widely seen as a reminder of the leverage China holds when it comes to minerals the United States relies on for a variety of goods, from jet fuel to wind turbines.

May 23: Trump rolls out a $16 billion bailout program for farmers who have been hurt by China’s retaliatory tariffs on agricultural products. 

PicturePicture
Author
Amber Thomas
Vice President, Advocacy
Recent international News
China’s manufacturing PMI signals headwinds, but long-term growth is projected. The country shows resilience, with new investments flowing in and manufacturing technology consumption staying strong. For more industry intel and other tidbits, read on.
China's strong machine tool market, supported by a successful CIMT show and ongoing investments, demonstrates resilience in the manufacturing sector. Will this be sufficient to address recent challenges? For more industry intel and other tidbits, read on.
China's economy continues to show resilience and strength. The first quarter of 2025 experienced 5.4% GDP growth, driven by consumer subsidies and a surge in export shipments in anticipation of tariffs. For more industry intel and other tidbits, read on.
In a turbulent landscape of changing trade policies, geopolitical tensions, and structural challenges, China’s policy-driven industrial investment stabilizes growth and creates business opportunities. For more industry intel and other tidbits, read on.
Fluctuations from China's efforts to boost consumption and address trade challenges show its economy is strong. With some growth expected in 2025, China continues to attract investments and opportunities. For more industry intel and other tidbits, read on.
Similar News
undefined
Advocacy
By Amber Thomas | Dec 17, 2020

Last month, Democratic former Vice President Joe Biden was elected president, defeating President Donald Trump, the Republican incumbent. In Congress, the GOP made significant gains in the House of Representatives, and the Senate’s majority will be...

3 min
undefined
International
By Fred Qian | Dec 11, 2020

China continues its extraordinary manufacturing growth despite the challenges of 2020. The PMI has remained above 50 for nine consecutive months. SAIC and BYD, two of China’s automotive manufacturers, are well ahead of 2019 sales. FDI into China...

2 min
undefined
International
By Edward Christopher | Mar 04, 2020

We’ve stated it here before: The majority of the world’s machine tool market lies outside of the United States. Consumption statistics put that number in excess of 80 percent, leaving less than 20 percent here at home. If you are not exporting or...

3 min