china tariffs Archives | Customs & International Trade Law Blog

Tariffs are Bad, So Are Non-tariff Barriers

We are pleased to share our latest feature in the National Interest! View the original article here.

Jennifer Diaz – Board-certified international attorney and President of Diaz Trade Law
Jerry Haar – Professor and Executive Director, The Americas, Florida International University – College of Business

Tariffs, which Donald Trump once called “the most beautiful word in the dictionary,” constitute the centerpiece of his administration’s trade and economic policies. The tariff theme featured prominently in the president’s State of the Union address on March 4 and represents a clear article of faith for him. The April 2 “Liberation Day” announcement of new sweeping tariffs makes it crystal clear that the president means business.

New U.S. tariffs on goods from Canada, Mexico, and China are estimated to increase tax revenue by $600–650 billion over ten years. The cost to American households in raised prices would be equivalent to a $2,100 tax hike, according to the Tax Foundation.

However, “non-tariff barriers”—impediments to free market commerce that are far more pernicious than tariffs are absent from the discussion on tariffs. These policy-related measures that can restrict trade between countries include quotas, licensing requirements, import bans, subsidies, customs procedures, technical regulations, and standards.

In the global context, non-tariff barriers to trade (NTBs) can increase the cost of trade by raising compliance costs, delaying shipments, and adding layers of bureaucracy. For example, […]

By Jennifer Diaz|2025-04-13T12:37:04-04:00April 9, 2025|Tariffs|Comments Off

New Tariffs on Mexico, Canada, and China: Key Updates for Importers

Over the weekend, President Trump first issued a fact sheet and thereafter signed three executive orders imposing new tariffs on imports from Canada, Mexico, and China:

25% tariff on imports from Canada will take effect at least 30 days from Feb. 4, 2025.
25% tariff on imports from Mexico are now scheduled to take effect on March 4, 2025.
10% tariff on imports from China will take effect on February 4, 2025.

In a Truth Social post on February 27, President Trump confirmed that the tariffs on Canadian and Mexican goods will go into effect on March 4. He also announced that China will face an additional 10% tariff starting March 4.

Energy resources from Canada will have a lower 10% tariff. The orders ended duty-free de minimis treatment under 19 U.S.C. 1321 for products from China subject to these additional tariffs. However, President Trump signed a subsequent executive order pausing the suspension of de minimis treatment.

Tariffs will be on top of any other in place (301, 232, ADD, etc.) The Federal Register Notice for Canada can be found here and the Federal Register Notice for China can be found here. […]

By Jennifer Diaz|2025-02-28T08:30:28-05:00February 3, 2025|Canada, China, Countries, Import, Mexico, news|Comments Off

Navigating Tariff Increases: Strategies to Minimize Tariff Costs Under the Trump Administration

Donald Trump favors tariffs. Leading up to the 2024 election, he called himself the “tariff man” and stated that tariffs are “the greatest thing ever invented” and “the most beautiful word in the dictionary.”

Although the specifics of Donald Trump’s tariff plan have yet to be revealed, he has made numerous public statements about the tariffs he has in mind. At a rally in North Carolina, he suggested imposing a 10-20% tariff on all imported goods. He also said that he would impose a 25% tariff on imports from Mexico if the country does not help curb the flow of immigrants and drugs over the border. He has also suggested a massive 60% to 100% tariff on Chinese origin goods.

So, what can importers do to prepare? A lot!

First, What is a Tariff?

A tariff (also known as a duty) is a tax levied by governments on the value of imported products. Tariffs differ greatly by country and by individual product. In the United States, tariffs are collected by U.S. Customs and Border Protection (CBP) and the money goes to the U.S. Treasury.

The importer of record is responsible for correctly classifying their goods and paying the appropriate duty rate. Tariffs are not paid by the foreign seller or the country from which the goods are imported, thus the costs are generally passed along to the U.S. consumer.

Learn more about how tariffs work here.

Strategies to Minimize Tariff Costs

An increase in tariffs can undoubtedly have a significant impact […]

By Jennifer Diaz|2024-11-18T13:43:13-05:00November 15, 2024|Import|Comments Off

Big News! 352 of 549 Proposed China Tariff Exclusions Reinstated

On March 23, 2022, the U.S. Trade Representative (“USTR”) announced that 352 of the 549 proposed exclusions have been reinstated. The reinstated product exclusions will apply as of October 12, 2021, and extend through December 31, 2022. For a full list of reinstated exclusions, please see this Federal Register announcement.

On October 8, 2021, USTR invited comments on whether to reinstate 549 previously granted and extended exclusions. This recent determination was a result of USTR’s review of public comments regarding whether and which of the proposed exclusions should be reinstated.

Diaz Trade Law filed comments on behalf of several clients who have had their exclusions reinstated. Are your products on the list of exclusions that were reinstated? Do you have questions about navigating Section 301 China tariffs? We are here for you! Diaz Trade Law has significant experience working on Section 301 exclusions. Contact us today at info@diaztradelaw.com.

A list of all the exclusions can be found below:

A. Effective with respect to good entered for consumption, or withdrawn from warehouse for
consumption, on or after 12:01 a.m. eastern daylight time on October 12, 2021, and before
11:59 p.m. eastern daylight time on December 31, 2022, subchapter III of chapter 99 of the
Harmonized Tariff Schedule of the United States (HTSUS) is modified:
1. by inserting the following new heading 9903.88.67 in numerical sequence, with the
material in the new heading inserted in the columns of the HTSUS labeled
“Heading/Subheading”, “Article Description”, and “Rates of Duty 1-General”,
respectively:
Heading/Subheading: 9903.88.67

Article Description: Effective with respect to entries on or after
October 12, […]

By Jennifer Diaz|2022-03-28T10:37:08-04:00March 23, 2022|301 INVESTIGATIONS, ACE, China, China Trade War, Import, Reasonable Care, Trade Policy, U.S. Customs and Border Protection (CBP), U.S. Trade Representative (USTR)|Comments Off

2021: A Year in Review

From all of us at Diaz Trade Law, we are incredibly thankful and grateful for your support this year. Despite this ongoing pandemic, Diaz Trade Law still managed to save our clients MILLIONS of dollars in 2021. It is with great joy that we finish off 2021 filled with numerous achievements and accomplishments were humbled to share with you. We look forward to assisting you in what we envision will be a better and brighter 2022!

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By Jennifer Diaz|2022-04-25T16:55:36-04:00December 30, 2021|ACE, AD/CVD, Best Practices, CBP 28, China, COVID-19, Currency Seizure, Export, HTS, Import, Import Alert, International Trade, IPR, Trademarks and Logos, Prior Disclosures, Seizures, U.S. Customs and Border Protection (CBP), U.S. Federal Aviation Administration (FAA), U.S. Federal Trade Commission (FTC), U.S. Food and Drug Administration (FDA), U.S. Office of Foreign Assets Control (OFAC)|Comments Off

301 Exclusion Extensions for COVID-19 Related Products

On March 10, 2021, via Federal Register Notice ( 86 FR 13785), the United States Trade Representative (USTR) announced that 99 medical product exclusions will be extended from March 31, 2021, to September 30, 2021. This action extends a previous USTR action which extended these exclusions from December 31, 2020, to March 31, 2020 (85 FR 85831). […]

By Jennifer Diaz|2021-10-12T14:38:04-04:00April 13, 2021|301 INVESTIGATIONS, Best Practices, China, China Trade War, COVID-19, Customs Expert, Enforcement, HTS, Import, International Business, International Trade, Special 301, Trade Policy, U.S. Customs and Border Protection (CBP), U.S. Trade Representative (USTR)|Comments Off

USTR Announces China 301 Tariff Exclusion Extensions for COVID-Related Products

On December 29, 2020, the Office of the United States Trade Representative (“USTR”) announced long-awaited extensions to a limited set of previously granted exclusions (for COVID-related products), that were set to expire on December 31, 2020. Meanwhile, importers across non-COVID industries are continuing to await guidance on their tariff exclusion extensions that are set to expire on December 31, 2020.

[…]

By Jennifer Diaz|2021-10-12T15:11:51-04:00December 30, 2020|301 INVESTIGATIONS, China, China Trade War, COVID-19, Customs Broker, Customs Expert, Enforcement, Export, HTS, Import, International Business, International Law, International Trade, Investigation, IPR, Trademarks and Logos, Supply Chain, U.S. Customs and Border Protection (CBP)|3 Comments

LIST 3 Exclusion Updates

On June 24, 2019, the Office of the United States Trade Representative (USTR) provided the public with an exclusion process for items included subjected to Section 301 Tariffs. Specifically, the exclusions related to products included on List 3, which went into effect on September 24, 2018.

Originally, List 3 imposed 10 percent ad valorem duties on 5,757 full and partial subheadings of the Harmonized Tariff Schedule of the United States (HTSUS) and had an annual trade value of $200 Billion. Months later, in May 2019, the 10 percent ad valorem duties were increased to 25 percent. […]

By Jennifer Diaz|2021-10-20T15:23:25-04:00October 26, 2020|China, China Trade War, Enforcement, Export, HTS, Import, International Business, International Law, International Trade, Investigation, IPR, Trademarks and Logos, Supply Chain, U.S. Customs and Border Protection (CBP)|1 Comment

List 4 Exclusion Update

On June 26, July 17, and August 11, 2020, the Office of the United States Trade Representative (USTR) requested the public to submit comments regarding potential product exclusion extensions for items subject to Section 301 Tariffs. This comment period specifically applied to products that were included on List 4.

When the list was announced on August 20, 2019, it imposed a 10 percent ad valorem on 3,805 full and partial subheadings of the Harmonized Tariff Schedule of the United States (HTSUS), with an annual trade value of approximately $300 billion. Then, on August 30, 2019, USTR increased the rate of the additional duty announced in the August 20 notice from 10 to 15 percent. Finally, on January 22, 2020, USTR determined to reduce the rate from 15 to 7.5 percent. […]

By Jennifer Diaz|2021-10-20T15:24:48-04:00October 23, 2020|China, China Trade War, Customs Expert, Enforcement, Export, HTS, Import, International Business, International Law, International Trade, Investigation, IPR, Trademarks and Logos, Supply Chain, U.S. Customs and Border Protection (CBP), USMCA|Comments Off

NEW LIST 2- SECTION 301 EXTENSIONS

On June 25, 2020, the Office of the United States Trade Representative (USTR), requested the public to submit comments regarding potential product exclusion extensions for items subject to Section 301 Tariffs. This comment period specifically applied to products that were included on List 2, which went into effect on August 23, 2018.

List 2 imposed 25 percent additional duties on 279 eight-digit subheadings of the Harmonized Tariff Schedule of the United States (HTSUS) and had an annual trade value of $16 Billion.

On September 18, 2018, USTR provided the public with an exclusion process; then September 2019, USTR granted a number of exclusions that were set to expire on September 20, 2020. In the June 25^th Notice, commenters were asked a variety of questions relating to their supply chains, such as…

whether the particular product and/or a comparable product is available from sources in the United States and/or in third countries; any changes in the global supply chain since August 2018 with respect to the particular product, or any other relevant industry developments; and efforts, if any, importers or U.S. purchasers have undertaken since August 2018 to source the product from the United States or third countries.

The June 25th announcement was made via federal register notice and stated that requests for exclusion extensions were to be submitted no later than July 30, 2020. Less than three months later, on September 22, 2020, USTR announced its determination to extend certain exclusions through the end of the year. Although USTR […]