The Trump Administration has approved the latest round of superimposed tariffs on $200 billion worth of Chinese imports, including many dietary ingredients. The move places an immediate burden on the supply-side of the natural products industry, as companies scramble to figure out pricing and availability, while hoping for relief via an exclusion process. The effects, including any price increases, are not expected to impact retailers and consumers until a later date, possibly in mid- to late-2019.
President Trump announced the move Sept. 17 and set Sept. 24 as the effective date for this round of tariffs, known as “List 3.” Two previous rounds of tariffs were levied on a total of $50 billion worth of imports, primarily steel, aluminum and equipment.
After much speculation, Trump kept the List 3 tariffs at 10 percent, but this figure will rise to 25 percent on Jan. 1, 2019, if the trade war with China persists.
“We are taking this action today as a result of the Section 301 process that the USTR [U.S. Trade Representative] has been leading for more than 12 months,” Trump wrote in a statement published on the White House website. “After a thorough study, the USTR concluded that China is engaged in numerous unfair policies and practices relating to United States technology and intellectual property – such as forcing United States companies to transfer technology to Chinese counterparts.”
Read The Full Article HERE
