The main media outlets have comprehensively covered the ‘Trump 25 % duty rate’ and for companies in the trade it is worth going into more detail.

Firstly, the 25% rate applied from 10 May 2019 but for shipments that left from China before that date and are already in transit the previous 10% duty rate will apply.

The higher duty rate of 25% ONLY applies for imports from China to the USA. So an import into China from Vietnam for example will not be subject to the additional surcharge.

Imports via a third country; for example China manufactured goods sent via Canada, It’s the origin of the goods that matters, the routing makes no difference so the 25% rate would still apply.

Not all Chinese goods have a 25% duty rate in the USA. Around 50% by value of Chinese goods currently do not carry any kind of surcharge at all. Generally speaking if they are consumer goods they are not being surcharged, If they are not they probably will incur the 25% duty rate.

What happens next? It is all down to how trade talks go. The surcharges so far are from list 3. List 4, which is Trump’s next threat to China would see all remaining goods imported from China to the USA incurring a 25% duty date.

The following link provides further information: https://csms.cbp.gov/viewmssg.asp?Recid=24227&page=&srch_argv=19-000236&srchtype=all&btype=&sortby=&sby=

RELATED POSTS

Contact Us

Contact Us