USTR announces China Section 301 tariffs

Arlington, Virginia, USA, 20 June 2018: The Office of the United States Trade Representative (USTR) announced plans to move ahead with the phase-in of Section 301 tariffs against what the United States government has described as, “China’s acts, policies, and practices involving the unfair and harmful acquisition of United States technology”, the Air-Conditioning, Heating, and Refrigeration Institute (AHRI) said, in a Press communiqué. AHRI said that USTR has published a first list of 818 tariff lines, which is now final. U.S. Customs and Border Protection will collect the tariffs starting July 6, 2018, the communiqué said.

According to AHRI, a second list of 284 tariff lines includes new products that were not mentioned in the April preliminary list published by USTR. This list is still subject to a public notice and comment period, including a public hearing, and is therefore likely to change, the communiqué said.

AHRI said, its staff has analysed both tariff lists and a summary of the analysis follows:

• The first list of 818 tariff lines (finalised list): AHRI member products include: boilers, pumps, compressors, furnaces, refrigerators, freezers, water heaters, heat exchangers, motors, and control equipment.
• The second list of 284 tariff lines (list is subject to change): AHRI member products include: heat exchangers, motors, and control equipment.

According to AHRI, China announced that it will respond if the USTR implements the Section 301 tariffs. In April, China released a retaliatory list of 106 products imported from the United States that would be subject to a 25% tariff, the communiqué said. AHRI staff did not identify any HVACR or water heating products on that list, the communiqué further said.

According to AHRI, President Trump announced that the United States “will pursue additional tariffs if China engages in retaliatory measures,” in a Presidential Statement published on June 15. The AHRI communiqué said the trade association would continue to track developments and update members on this matter.