China 301 Tariffs Update: Trump Indicates Intention to Raise Tariffs for All Lists, Deadline Approaches for Third List Exclusion

08/26/2019

U.S. to Raise Section 301 Tariffs to 30 Percent on October 1 for First, Second and Third Lists of Merchandise; New Fourth List Tariffs to be Increased to 15 Percent as of September 1.

Trump Threatens to Use Extraordinary Powers Against U.S. Companies Manufacturing in China

On Aug. 23, 2019, President Trump Tweeted his intentions to:

Raise the existing China 301 tariffs on merchandise set out on the first, second and third lists from 25 percent to 30 percent. This increase will take place for goods entering the United States on or after Oct. 1, 2019. This will impact Chinese-origin eyeglass cases, lens cleaning solutions, hand-held and stand magnifiers, and various other diagnostic and equipment used in eyewear production.
Raise the upcoming China 301 tariff on merchandise set out on lists 4A and 4B from 10 percent to 15 percent. This increase will take place for goods entering the United States on or after Sept. 1, 2019, for list 4A merchandise, and Dec. 15, 2019, for list 4B merchandise. Chinese-origin eyeglasses, spectacle lenses, spectacle frames, reading glasses, Plano and Rx sunglasses, and most low vision devices are on list 4A. To see the complete list 4A and 4B, visit thevisioncouncil.org.
The Vision Council conducted a flash survey to learn how members may respond to the fourth list of Tariffs. Please click here to see the results.
Threaten to invoke the International Emergency Economic Powers Act (IEEPA) to force U.S. companies out of China and into other countries, especially the U.S. IEEPA is a very broad federal statute, which is used as the basis for many U.S. sanctions against foreign countries. To use it, however, Trump would have to conclude that trade with China, or manufacturing in China, constitutes a national emergency. Such a statement would equate China with nations currently subject to trade sanctions such as North Korea, Iran or Cuba. Right now, this Tweet is just a threat.

Deadline Approaching for Companies to Request List Three Exclusion

The Vision Council would also like to remind member companies impacted by the third list of China tariffs—including eyeglass cases, lens cleaning solutions and magnifiers—that Sept. 30, 2019 is the deadline to request a specific exclusion to the list three duties. If your company requests an exclusion, be prepared to provide the following information:

Requestor's relationship to the product
Is this product, or a comparable product, available from sources in the United States?
Is this product, or a comparable product, available from sources in third countries?
Explanation of your attempts to source this product from the United States or third countries
Whether the Chinese-origin product of concern is sold as a final product or an input used in the production of a final product or products
Explanation of if the product of concern is strategically important or related to "Made in China 2025" or other Chinese industrial programs

To begin the exclusion process, click here.

Any questions about this issue can be directed to Rick Van Arnam, The Vision Council regulatory affairs counsel, at rvanarnam@barnesrichardson.com.