US moves quickly to implement Donald Trump’s trade war tariff increase on Chinese-made consumer goods

Tariff increases from 10 to 15 per cent on US$300 billion of Chinese imports, many of them consumer goods, to the United States moved a step closer on Tuesday as the US government scheduled an official filing confirming the move announced by US President Donald Trump last week.

The notice to increase tariffs – which will appear on Friday, August 30 in the US Federal Register, an official journal that hosts changes to federal government agency rules and public notices – followed up swiftly on Trump’s decree last Friday that tariffs already scheduled for implementation on September 1 and December 15 respectively would see their rate increase by 5 per cent.

This move was in response to China’s decision earlier on Friday to impose retaliatory tariffs of between 5 and 10 per cent on US$75 billion worth of American products, including soybeans, pork, and, for the first time, crude oil. China also reinstated the 25 per cent penalty duty on imports of US-made cars and car parts, bringing the total tariff on the sector to 40 per cent.

“In accordance with the specific direction of the president, the US Trade Representative has determined to modify the action being taken in this Section 301 investigation by increasing the rate of additional duty from 10 to 15 per cent for the products of China covered by the US$300 billion tariff action published on August 20, 2019,” read a draft note hosted on the US Federal Register.

Given that September 1, when the next round of tariff increases are due to take effect, is a Sunday, and Monday, September 2, is the Labour Day public holiday in the US, the US Trade Representative (USTR) notice needed to be made before the weekend.