The President announced the third round of tariffs in the Section 301 action, imposing 10% tariffs on Chinese imports valued at $200B, effective September 24, 2018. Tariffs were scheduled to increase to 25% on January 1, 2019, but the President suspended this deadline for 90-days to allow for negotiations between the US and China.
Timeline of Section 301 Tariff Measures
May 29, 2018
The President issues a statement, invoking his authority under Section 301 of the U.S. Trade Act of 1974 to combat China’s burdensome trade practices on U.S. interests. He instructed the Office of the U.S. Trade Representative (USTR) to release by June 15 a list of Chinese imports valued at $50B that would be subject to an additional 25% tariff.
July 6, 2018
Effective date of 25% tariffs on Chinese imports valued at $34B. (List #1)
July 10, 2018
USTR releases notice of intent and initiation of the public comment period to impose additional 25% tariffs on a third list of Chinese imports valued at $200B. (List #3)
August 23, 2018
Effective date of 25% tariffs on Chinese imports valued at $16B. (List #2)
September 17, 2018 President announces decision to impose 10% tariffs on Chinese imports valued at $200B. (List #3). Tariffs to increase to 25% on January 1, 2019. President also announces additional tariffs on $267B of Chinese imports if China retaliates against the U.S.
September 18, 2018
China initiates retaliation against the U.S., moving to impose tariffs on $60B of U.S. goods imported into China, increasing likelihood of fourth round of tariffs imposed by the U.S.
September 24, 2018
Effective date of 10% tariffs on Chinese imports valued at $200B. Scheduled to increase to 25% on January 1, 2019. (List #3).
December 19, 2018 – President announces a 90-day suspension of the January 1, 2019 deadline. List #3 tariffs to increase to 25% on March 2, 2019 if negotiations do not result in China meeting US demands.
May 10, 2019
President announces decision to increase tariffs to 25% on List #3. Increase to take effect May 10, 2019. For additional information, visit USTR.gov.
Tariffs are taxes that cannot be negotiated, therefore Ferguson Industrial must implement timely price increases to cover additional costs in totality. While we cannot give manufacturer-specific price increases at this time, we will immediately follow manufacturer price changes as we receive them.
Ferguson Industrial does not anticipate any shortages of material. However, increased tariffs will result in price increases. To better support you, we are proactively contacting all our vendor partners to understand how they will manage price increases including existing job contracts.
Here are the steps we will take given the information we have today:
Our priority is to provide you with access to products at a competitive price, with no disruption in supply. We appreciate your loyalty and understanding as we manage this changing business environment. If you have questions concerning upcoming jobs or existing quotes, please speak with your Ferguson Industrial sales associate to help plan your business.
Thank you for your continued support and partnership.