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Trade and Industry Department The Government of the Hong Kong Special Administrative Region
Brand Hong Kong - Asia world city

Commercial Information Circulars

24-hour hotline : 23 922 922

e-mail address : enquiry@tid.gov.hk

Ref. :EIC 111/2/18
EIC 111/3
EIC 111/3/13
CR EIC 111/1/13/3

6 December 2018
(updated on 19 December 2018)

Dear Sirs,

Commercial Information Circular No. 1093/2018

US : Section 301 Tariffs on Mainland Products Worth US$200 billion - Postponement of Tariff Increase from 10% to 25% 

Further to Commercial Information Circular (CIC) Nos. 858/2018 and 888/2018 of 18 and 28 September 2018 respectively regarding the US' additional tariffs on certain Mainland products worth approximately US$200 billion under the Section 301 investigation, the US announced through a White House Statement of 1 December 2018 and a Federal Register (FR) notice of 19 December 2018 to postpone the tariff increase from 10% to 25%, which was originally set to take effect on 1 January 2019.  The US would increase the tariffs to 25% on 2 March 2019 if its negotiations with Mainland China are unable to reach an agreement.

DETAILS

2.On 21 September 2018, the USTR released the finalized list of Mainland products worth about US$200 billion which are subject to additional tariffs under the Section 301 investigation.  The finalized list contains 5,745 full or partial lines, which are subject to an additional 10% tariff starting 12:01 a.m. eastern daylight time on 24 September 2018, and the level of the additional tariffs would increase to 25% starting 1 January 2019.

3.According to a White House Press Statement of 1 December 2018 and a FR notice of 19 December 2018, after a meeting between President Xi Jinping of China and the US President on the sidelines of the G20 summit on 1 December 2018, the US President agreed to leave the tariffs on US$200 billion worth of the Mainland products at 10%, and not raise it to 25% on 1 January 2019.  Both parties agreed to immediately begin negotiations on a range of issues within the next 90 days starting from 1 December 2018.  If at the end of this period of time (i.e. 1 March 2019) the parties are unable to reach an agreement, the 10% tariffs will be raised to 25% on 2 March 2019.

4.For further details, please refer to the statement issued by the White House and the relevant FR notice:

White House Statement of 1 December 2018:
https://www.whitehouse.gov/briefings-statements/statement-press-secretary-regarding-presidents-working-dinner-china/

FR notice of 19 December 2018 on Postponement of Tariff Increase from 10% to 25%:
https://www.govinfo.gov/content/pkg/FR-2018-12-19/pdf/2018-27458.pdf

ENQUIRIES

5.For enquiries concerning the content of this circular, please contact the undersigned at 2398 5682.

Yours faithfully,

(Miss Ivy TAM)
for Director-General of Trade and Industry

Note: While every effort is made to ensure the accuracy of the above information, the Department cannot guarantee this to be so and will not be held liable for any reliance placed on the same.