China will increase retaliatory tariffs on $60 billion worth of U.S. goods as of June 1 after the Trump administration raised additional tariffs on $200 billion worth of Chinese goods on May 10. China has also announced that it will accept requests for exclusions from its tariffs.
Effective June 1 China will raise the tariffs already in place on four separate lists of products imported from the U.S., as follows.
– for 595 tariff lines, the tariff rate will remain 5 percent
– for 974 tariff lines, the tariff rate will increase from 5 percent to 10 percent
– for 1,078 tariff lines, the tariff rate will increase from 10 percent to 20 percent
– for 2,493 tariff lines, the tariff rate will increase from 10 percent to 25 percent
In addition, China has announced a pilot program that will allow companies who import, manufacture, or use products subject to retaliatory tariffs on U.S. goods to request an exclusion for those goods. There are specific timeframes within which requests must be submitted depending on which retaliation list they are on.
Each request will be limited to one product at the eight-digit tariff level and will be evaluated based on difficulty obtaining the product from sources other than the U.S., material injury from the tariff to the requestor, and any structural impact of the tariff on relevant industries. Any exclusions granted will remain in effect for one year.