In yet another development for the dramatic trade war between China and the US, a delay has been placed on a second tier of tariffs caught up within Trump’s fourth tranche of taxation on Chinese goods, exempting toys until at least December 15 this year.
The Office of the United States Trade Representatives issues a revised plan for tariffs, splitting the previously-announced list in two: 4A (September 1) and 4B (December 15). All products subject to the new tariffs will be taxed at the 10 per cent rate.
Trump announced the move to tax the remaining $300 billion worth of Chinese goods via Twitter on August 1st, a move that prior to the split would have seen toys swept up in the taxation ahead of the Christmas shopping season.
The delay will now allow certain US companies to better plan for the tariffs come mid December.
“A delay in tariffs to December 15 has saved the holiday season for many in the US toy and play community,” said Steve Pasierb, president and CEO of The Toy Association.
“We appreciate leaders in the administration listening and we hope through the tariff exclusion process the administration will provide further relief to the toy industry by eliminating all toys and toy-related components from these latest tariff lists.”
In addition to the delay in tariffs on toys, the USTR has said that certain products are being removed from the tariff list based on “health, safety, national security, and other factors and will not face additional tariffs of 10 per cent.”
Pasierb added: “While we continue to support the goal of restructuring the US-China trade relationship, tariffs are the wrong approach.”