The U.S. and China have shifted gears from threats to action in an increasingly hostile global trade environment. These times call for quick movement by company leaders to seek out tariff mitigation planning that could help alleviate lost revenue from the increased duty rates. KPMG can help.
U.S. Trade Representative announced that an initial round of Section 301 exclusions were granted in December 2018. Some exclusions have been granted at the 10-digit Harmonized Tariff Schedule (HTS) code level, while other exclusions have used a product specific description. There are seven HTS codes where any product under those codes is granted an exclusion, and these will apply to anyone importing products under those HTS codes that originate in China under those HTS codes. Importers should also determine if the product specific description exemptions could apply to their imports that originate in China.
In recent months, the U.S. government has taken significant tariff action, affecting a variety of product in a wide arrange of industries. In light of these developments, KPMG's Trade & Customs team is happy to share this update.
With tariffs on steel, aluminum, and certain goods and materials from China already in place, the U.S. trade team has negotiated the United States Mexico Canada Free Trade Agreement (USMCA) which tightens the rules on finished vehicles and automotive parts.