May 31st Update: Increased Tariffs On Chinese Goods Effective May 10th, 2019

By Pacific Customs Brokers, Pacific Customs Brokers 2019-05-31


May 31st, 2019, U.S. Customs and Border Protection sent out an update they would be extending the previous June 1st deadline to June 15th for a consumption entry to be eligible for the previous 10% duty rate.

This ensures goods that were already on the water were covered by the sudden increase in additional duty.

Any other goods subject to the new duty from China will have to pay the increased duty rate of 25%.


The Office of the United States Trade Representative (USTR) has taken action to increase the additional duties on merchandise outlined in tranche three of the section 301 trade remedies from 10% to 25%, on Friday, May 10th, 2019. Negotiations with Chinese officials are set to happen later this week which could dissolve this action.

How This Affects Your Shipments In Transit

For goods imported into the U.S. from China, that appear on tranche three:

Anything that arrives to the U.S. port of entry before Friday May 10th, 2019 will have the existing rate of duty applied to it. See previous update on these tariffs here.

Anything that arrives on or after May 10th, 2019 will be subject to the increased rate of duty (surtax) of 25%.

How The U.S. Arrived At Increasing Chinese Tariffs

The initial notification of an increase came in from a tweet from President Trump on Sunday.

Originally, the tweets were perceived as a threat to gain leverage ahead of the Chinese Vice Premier Liu He’s arrival in Washington, DC later this week.

USTR’s Robert Lighthizer said the increase was a result of a recent breakdown in negotiations with China at a time when the two sides seemed close to a deal that would end the trade war.  He further advised China had backed off on key issues that had been previously agreed to.

“Over the course of the last week or so, we have seen an erosion in commitments by China, I would say retreating from specific commitments that had already been made,” Lighthizer said.

In addition to increasing the additional duties on tranche three, Trump tweeted “$325 Billion Dollars of additional goods sent to us by China remain untaxed, but will be shortly, at a rate of 25%.”  

China has threatened to retaliate if the U.S. follows through with the increase in tariffs.  

Vice Premier Liu He is leading the Chinese delegation expected to arrive in Washington DC on Thursday May, 9th, 2019, to continue talks in an attempt to make a deal.

What Is Your Best Course Of Action?

Speak to a Trade Advisor today about alternative sourcing, valuation and tariff options that could result in a lower landed cost by contacting us at [email protected] today.

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