USTR Explains Stance on Exclusion Process For China Tariffs

An exclusion process for tariffs imposed on $200 billion in Chinese goods will be initiated if talks between the U.S. and China fail to resolve their ongoing trade dispute and the U.S. moves forward with plans to increase those tariffs from 10% to 25%, U.S. Trade Representative (USTR) Robert Lighthizer said. The details came in a letter from Lighthizer in response to an inquiry from Rep. Jackie Walorski, D-Ind. Currently, there is no exclusion process in place for the 10% tariffs already in place on $200 billion in Chinese goods. However, USTR does have one in place for earlier $34 billion and $16 billion tariff actions. "In December, USTR granted nearly 1,000 requests to exclude certain products from the $34 billion tariff action," Lighthizer noted. An increase in the tariff rate from 10% to 25% on the $200 billion tariff action is currently on hold, Lighthizer noted, after President Donald Trump agreed to postpone it until March 2 as part of the 90-day trade truce announced with Chinese President Xi Jinping December 1. If ongoing talks fail to resolve "structural issues with China's economic policies, such as forced technology transfer, intellectual property theft, and other actions impeding American economic growth and innovation," the duty rate will increase to 25% and "USTR will initiate an appropriate exclusion process," Lighthizer said.