U.S. increases and proposes expansion of tariffs on Chinese imports

The U.S. Trade Representative (USTR) announced on May 9 that it increased tariffs on approximately $200 billion worth of Chinese imports initially identified in September 2018 from 10 percent to 25 percent. In a May 15 Federal Register notice, USTR clarified that this increase does not apply to products that were exported to the U.S. prior to May 10, 2019, if the products entered the U.S. prior to June 1, 2019. These products remain subject to the additional 10 percent duty for this interim period.

USTR then proposed on May 17 a 25 percent tariff on “essentially all products” imported from China that were not subject to the September 2018 action, with exceptions including “pharmaceuticals, certain pharmaceutical inputs, select medical goods, rare earth materials, and critical minerals.” This would impact approximately $300 billion in imports, including tea (Camellia sinensis) and herbal extracts. USTR invites comments from interested persons on the proposed action and has scheduled a public hearing on June 17. Requests to appear at the hearing must be submitted by June 10 and written comments are due June 17.

AHPA has been providing feedback to USTR and will be submitting comments on the most recent tariff proposal in an effort to minimize economic harm to member companies that import ingredients from China.

“Numerous herbal product ingredients are impacted by this latest round of tariff increases and the proposed expansion could increase the impact on U.S. herbal products companies,” said AHPA president Michael McGuffin. “We will continue to evaluate the potential impact of this new round of tariff actions on U.S. based dietary supplement marketers and seek member and industry input as we prepare recommendations for USTR.”

The Chinese government has responded to recent U.S. tariff actions by announcing plans to impose tariffs on $60 billion worth of American products, including any plant mainly used as a spice.