China Hits Back Against Latest Proposal for Section 301 Tariffs

August 3, 2018 |Top News

China responded to proposed U.S. tariffs on $200 billion worth of goods under Section 301 with a new tariff threat of its own on Aug. 3. The Chinese Ministry of Commerce announced plans to add tariffs of between 5 percent and 25 percent on 5,207 items, said to account for about $60 billion worth of goods from the U.S. The Office of the U.S. Trade Representative is considering imposing tariffs of 25 percent on $200 billion worth of Chinese goods (see 1808010070). "The US measures have deviated from the consensus of the two sides, leading to an escalation of trade friction between China and the United States, serious violations of relevant rules of the World Trade Organization, and damage to our national interests and people's interests," the Ministry of Commerce said, according to an unofficial translation.

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China released four lists of goods: one for new 25 percent tariffs, one for new 20 percent tariffs, one for new 10 percent tariffs and one for new 5 percent tariffs. Among the items being targeted by the Chinese are wood products, alcoholic drinks, coffee, liquified natural gas and leather goods. Implementation dates "will be announced separately," it said. Chemicals were again caught by the tariffs, said the American Chemistry Council. "According to analysis by the American Chemistry Council’s economics and statistics department, out of the 5,207 products across the 4 Chinese tariff lists, 999 are chemicals and plastic products. Thus, nineteen percent (19%) of all of the products listed are chemicals and plastic products," the group said in a news release.

While the translated version of the announcement mentions "items for the United States and Canada" within the titles of the four lists, a spokesman for the Chinese embassy said that's a mistranslation. A spokesman for the Canadian embassy said, "given the importance of our trading relationship with both the U.S. and China, we are monitoring developments closely, including identifying any potential impacts on Canadian interests." Subsequently, the Canadian spokesperson said "we have confirmation now that the draft Chinese lists are not targeting Canada."

List of Goods Subject to 25% tariffs:

The 8-digit subheadings for the list goods subject to 25 percent tariffs fall in the following Harmonized Tariff Schedule chapters and headings (note that not all subheadings would necessarily be covered in the headings listed below):

Chapter 1: 0101, 0106
Chapter 2: 0204, 0210
Chapter 3: 0305
Chapter 4: 4090, 0410
Chapter 5: 0504, 0508, 0511
Chapter 6: 0602, 0603, 0604
Chapter 7: 0710
Chapter 8: 0811, 0814
Chapter 9: 0901, 0902, 0904, 0906, 0909, 0910
Chapter 11: 1101, 1102, 1103, 1104, 1105, 1106, 1107, 1108, 1109
Chapter 12: 1206, 1207, 1211, 1212
Chapter 13: 1302
Chapter 14: 1401, 1404
Chapter 15: 1504, 1506, 1507, 1508, 1509, 1512, 1513, 1514, 1515, 1516, 1517, 1520
Chapter 16: 1602
Chapter 17: 1701, 1702
Chapter 18: 1801, 1803, 1804, 1805, 1806
Chapter 19: 1901, 1902, 1904, 1905
Chapter 20: 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009
Chapter 21: 2101, 2102, 2103, 2105, 2106
Chapter 22: 2201, 2202, 2203, 2204, 2205, 2206, 2207, 2208, 2209
Chapter 23: 2301, 2304, 2306
Chapter 25: 2501, 2502, 2503, 2504, 2505, 2506, 2507, 2509, 2510, 2512, 2513, 2515, 2516, 2517, 2518, 2519, 2520, 2522, 2523, 2524, 2525, 2528, 2529, 2530
Chapter 26: 2601, 2602, 2603, 2604, 2608, 2614, 2615, 2616, 2617
Chapter 27: 2711
Chapter 28: 2801, 2804, 2805, 2807, 2808, 2809, 2811, 2812, 2814, 2815, 2816, 2818, 2822, 2823, 2825, 2826, 2827, 2828, 2831, 2832, 2833, 2834, 2835, 2836, 2837, 2839, 2841, 2842, 2843, 2844, 2846, 2847, 2853
Chapter 29: 2901, 2902, 2903, 2905, 2906, 2907, 2908, 2909, 2910, 2912, 2913, 2914, 2915, 2916, 2917, 2918, 2921, 2922, 2924, 2925, 2927, 2929, 2930, 2931, 2933, 2934, 2936, 2937, 2938, 2939, 2941
Chapter 30: 3005, 3006
Chapter 31: 3102, 3104, 3105
Chapter 32: 3201, 3202, 3203, 3204, 3206, 3207, 3208, 3209, 3214
Chapter 33: 3301, 3302, 3303, 3304, 3305
Chapter 34: 3401, 3403, 3407
Chapter 35: 3501
Chapter 37: 3701, 3702, 3707
Chapter 38: 3801, 3805, 3806, 3808, 3809, 3812, 3817, 3823, 3824, 3825, 3826
Chapter 39: 3902, 3903, 3904, 3905, 3906, 3907, 3908, 3909, 3912, 3913, 3916, 3917, 3918, 3819, 3920, 3921, 3922, 3923, 3924, 3925, 3926
Chapter 40: 4001, 4002, 4005, 4006, 4007, 4009, 4010, 4011, 4012, 4013, 4014, 4015, 4016, 4017
Chapter 41: 4101, 4102, 4104, 4106, 4107, 4112, 4113, 4114, 4115
Chapter 42: 4202, 4203, 4205
Chapter 43: 4301, 4302, 4303, 4304
Chapter 44: 4401, 4402, 4403, 4405, 4407, 4408, 4409, 4410, 4411, 4412,4413, 4415, 4417, 4418, 4420, 4421
Chapter 45: 4501, 4503, 4504
Chapter 46: 4601, 4602
Chapter 47: 4706
Chapter 48: 4801, 4802, 4805, 4806, 4807, 4808, 4810, 4811, 4816, 4817, 4819, 4820, 4822, 4823
Chapter 49: 4906, 4908, 4910, 4911
Chapter 50: 5007
Chapter 51: 5101, 5103, 5106, 5107, 5108, 5109, 5111, 5112
Chapter 52: 5203, 5204, 5205, 5206, 5207, 5208, 5209, 5210, 5211, 5212
Chapter 53: 5306, 5309
Chapter 54: 5401, 5402, 5403, 5407, 5408
Chapter 55: 5501, 5503, 5504, 5506, 5507, 5508, 5509, 5510, 551, 5512, 5513, 5514, 5515, 5516
Chapter 56: 5601, 5602, 5603, 5605, 5606, 5609
Chapter 57: 5701, 5702, 5703
Chapter 58: 5801, 5802, 5804, 5806, 5807, 5808, 5810
Chapter 59: 5901, 5902, 5903, 5906, 5907, 5911
Chapter 60: 6001, 6002, 6003, 6004, 6005, 6006
Chapter 61: 6101, 6102, 6103, 6104, 6105, 6106, 6107, 6108, 6109, 6110, 6111, 6112, 6113, 6114, 6115, 6116, 6117
Chapter 62: 6201, 6202, 6203, 6204, 6205, 6206, 6207, 6208, 6209, 6210, 6211, 6212, 6213, 6214, 6215, 6216, 6217
Chapter 63: 6301, 6302, 6303, 6304, 6305, 6306
Chapter 64: 6402, 6403, 6404, 6505
Chapter 66: 6601, 6602, 6603
Chapter 67: 6702, 6703, 6704
Chapter 68: 6802, 6804, 6807, 6808, 6809, 6810, 6811, 6812, 6813, 6814, 6815
Chapter 69: 6901, 6902, 6907, 6910, 6911, 6912, 6913
Chapter 70: 7002, 7003, 7004, 7005, 7006, 7007, 7008, 7009, 7010, 7011, 7013, 7014, 7015, 7016, 7018, 7019, 7020
Chapter 71: 7101, 7102, 7103, 7104, 7105, 7106, 7108, 7109, 7110, 7111, 7114, 7116, 7117
Chapter 72: 7201, 7202, 7203, 7205, 7206, 7207, 7208, 7209, 7210, 7211, 7214, 7215, 7216, 7217, 7218, 7219, 7220, 7221, 7222, 7223, 7224, 7225, 7226, 7227, 7228, 7229
Chapter 73: 7301, 7302, 7304, 7305, 7306, 7307, 7308, 7310, 7312, 7314, 7315, 7318, 7319, 7320, 7321, 7322, 7323, 7324, 7325
Chapter 74: 7402, 7403, 7405, 7406, 7407, 7408, 7409, 7410, 7411, 7412, 7413, 7418, 7419
Chapter 75: 7501, 7502, 7504, 7508
Chapter 76: 7601, 7603, 7604, 7605, 7606, 7607, 7608, 7612, 7615
Chapter 78: 7801, 7804
Chapter 79: 7901, 7903, 7904, 7907
Chapter 80: 8001, 8003, 8007
Chapter 81: 8102, 8103, 8104, 8105, 8107, 8108, 8110, 8112
Chapter 82: 8201, 8202, 8203, 8204, 8207, 8208, 8209, 8211, 8213, 8214, 8215
Chapter 83: 8301, 8302, 8303, 8305, 8306
Chapter 84: 8402, 8403, 8404, 8406, 8408, 8409, 8410, 8413, 8414, 8415, 8416, 8417, 8418, 8419, 8420, 8421, 8422, 8423, 8424, 8425, 8426, 8428, 8429, 8430, 8431, 8432, 8433, 8434, 8438, 8439, 8440, 8441, 8442, 8443, 8444, 8445, 8446, 8447, 8448, 8449, 8449, 8450, 8451, 8452, 8453, 8454, 8456, 8457, 8458, 8459, 8460, 8461, 8462, 8463, 8434, 8465, 8466, 8467, 8468, 8470, 8471, 8472, 8473, 8474, 8475, 8476, 8477, 8479, 8480, 8481, 8482, 8483
Chapter 85: 8501, 8502, 8503, 8504, 8505, 8506, 8507, 8508, 8509, 8510, 8511, 8512, 8513, 8514, 8515, 8516, 8517, 8518, 8519, 8521, 8522, 8523, 8525, 8527, 8528, 8529, 8531, 8532, 8533, 8534, 8535, 8536, 8537, 8538, 8539, 8540, 8541, 8543, 8544, 8545, 8546, 8547, 8548
Chapter 86: 8607, 8608, 8609
Chapter 89: 8903, 8905, 8906
Chapter 90: 9001, 9002, 9003, 9004, 9005, 9006, 9007, 9010, 9011, 9013, 9015, 9016, 9017, 9018, 9019, 9023, 9028, 9029, 9030, 9031
Chapter 91: 9102, 9103, 9104, 9105, 9109, 9112, 9113, 9114
Chapter 92: 9201, 9202, 9205, 9207, 9808, 9209
Chapter 94: 9401, 9403, 9404, 9405, 9406
Chapter 95: 9503, 9504, 9505,9506, 9507
Chapter 96: 9601, 9603, 9606, 9607, 9611, 9613, 9614, 9620
Chapter 97: 9704

(See 1808060006 for coverage of the list of goods subject to 20 percent tariffs, 1808070020 for coverage of the list of goods subject to 10 percent tariffs and 1808080012 for coverage of the list of goods subject to 5 percent tariffs.)