News outlets are reporting that the U.S. is preparing a fourth round of tariffs on Chinese imports if talks fail between President Trump and China’s President Xi Jinping, which is scheduled for late November at the G-20 Summit in Buenos Aires. The fourth round of tariffs would include all remaining Chinese imports and is expected to be announced in early December and go into effect around the beginning of February following a 60-day public comment period.
The current tariffs on about $250 billion in Chinese imports are at 10 percent, but are slated to rise to 25 percent on January 1, 2019. The tariffs went into effect in September and include six categories of products sold within the promotional products industry. Included in that list are bags (briefcases, leather handbags, golf bags, gun cases, gym bags, musical instrument cases, toiletry bags, wallets, purses, tool bags, sports bags, vanity cases, glasses cases, backpacks, insulated food or beverage bags, and suitcases), hats (including wool knit caps and baseball caps), notebooks (paper diaries, journals, notebooks, address books, memo pads, folders and stationery), fabrics (cotton, wool or synthetic sources and all textile inputs including yarns and fabrics) and sporting gloves (such as baseball and other gloves used in sports).
The fourth list, representing approximately $267 billion in imported products, would expand to consumer goods categories that have so far gone untouched by U.S. tariffs, such as cellphones and shoes.
PPAI is working with experts both within and outside the industry to develop tools for promotional products businesses to stay informed of, identify and navigate the tariffs and their effects. Follow PPB Newslink for more information as it becomes available. The Association also encourages industry companies to communicate with supply chain partners, clients and end users about the tariffs and their impact.
