US sets March 2 for China tariff increases amid talks

THE US Trade Representative's office on Friday officially changed the scheduled date of a tariff rate increase on $200 billion worth of Chinese goods to 12:01 a.m. EST (0501 GMT) on March 2, 2019 as the United States and China pursue talks on trade and intellectual property.

The change was made in a Federal Register filing from a previously scheduled effective date of Jan. 1, 2019 for the increase to 25 percent from 10 percent.

The notice does not affect the 25 percent tariff rate already in place on $50 billion worth of Chinese technology items, including semiconductors, printed circuit boards and other electronic components, machinery and vehicles.

The filing was added to documents associated with USTR's “Section 301” investigation into China's intellectual property practices, which has been the basis of US tariffs on Chinese goods that led to tit-for-tat retaliation from Beijing.

It attributed the change to new US-Chinese engagement “with the goal of obtaining the elimination of the acts, policies, and practices covered in the investigation” following a Dec. 1 meeting between US President Donald Trump and Chinese President Xi Jinping in Buenos Aires.

The USTR statement did not specify any expected outcomes of the negotiation. It made reference to goals set forth in a statement issued by the White House to negotiate over a 90-day period structural changes by China on forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and theft, services and agriculture.