The U.S. manufacturing sector has contracted this year, even though the overall economy has shown growth over the last 10 months. This contraction has been attributed to the U.S.-China trade war, sparked by U.S. tariffs placed on select imports from China. As a result, I continue to receive invitations to speak with manufacturers, share the facts, and offer recommendations to thrive during this trade war. With an emphasis on facts, this blog post lists the specific imported goods from China that are impacted by the U.S. tariffs.
September 1st Tariffs Increased From 10 to 15 Percent
On September 1st, the 10 percent tariffs on US$300 billion worth of imports from China increased to 15 percent. Some of the manufactured products in this category include the following:
- T-shirts
- Overcoats
- Swimwear
- Tracksuits
- Footwear
- Glassware
- Steel
- Aluminum
- Microphones
- Loudspeakers
- High definition color television reception apparatus
- Wrist watches
- Keyboard musical instruments
A full list of the products, including non-manufactured goods, can be found at https://ustr.gov/sites/default/files/enforcement/301Investigations/Notice_of_Modification_%28List_4A_and_List_4B%29.pdf (scroll to page 27 of the pdf file/pp. 43330 on the actual document).
October Tariffs to Increase From 25 to 30 Percent
Two days ago, President Trump tweeted that a five percent increase on tariffs on additional goods from China scheduled for October 1st has been delayed by another two weeks. The current 25 percent tariff on US$250 billion worth of Chinese imports will go up to 30 percent next month. These tariffs are aimed at any goods from industries that benefit from the Made in China 2025 policy, such as the aerospace and automobile industries, as well as other manufactured goods.
December 15th Tariffs to Increase from 10 to 15 Percent
Some products faced a delay in their tariff increase. In other words, some items that did not see an increase on September 1st will face the five percent hike on December 15th. Some of these goods include the following:
- Cell phones
- Laptop computers
- Video game consoles
- Toys (specific items)
- Computer monitors
- Footwear and clothing (specific products).
The delay in the tariff increase on these high-demand goods is designed to limit the cost impact on consumers during the holiday shopping season.
This information and much more will be shared with Southern Californian manufacturers during an informal breakfast next week. Furthermore, join me on GRIIT’s Facebook Live show on Tuesday at 2 p.m. PST, during which I will share how a specific manufacturing company has performed in the midst of the trade war.