U.S. and China Trade Tariffs – Update #2
Earlier this month, the Trump Administration announced that U.S. Section 301 List 3 tariffs on $200 billion of Chinese goods with an additional 10 percent was too take effect on Sept. 24, 2018. The level of the additional tariff will increase to 25 percent starting Jan. 1, 2019.
In response, China announced its implementation of retaliatory tariffs that became effective immediately after U.S. tariff action on Sept. 24, 2018. While these tariffs have been revised downwards since originally announced, if the U.S. increases its tariff to 25 percent on Jan. 1, 2019 China will likely raise retaliatory tariffs on Lists 3A, 3B and 3C to the original proposed rates.
There are numerous tariff codes for PMMI members’ packaging machinery and equipment included on China’s Section 301 Lists 3A through 3D. PMMI’s U.S.-made machinery will face additional tariffs into China ranging from five percent to 10 percent depending on the type of machinery. This will impact the landed cost of the machinery for customers in China.
US-Made Food-Processing & Packaging Machinery Targeted with Retaliatory Tariffs into China
China’s retaliatory tariffs are currently in effect ranging from 5% - 10%, and could increase as high as 25% in 2019
China's Import Code
Product Description
China Section 232 Retaliation
Retaliatory Tariff Rates (applied on top of China's MFN rate)
2017 US Exports to China
Estimated Tariff Cost Increase for Shipments into China based on 2017 US Export Values
8422.20.00
MACHINERY FOR CLEANING OR DRYING BOTTLES OR OTHER CONTAINERS
Section 301 3B
Tariff originally proposed: 20%
Tariff currently in place: 10%
$508.2 K
$50.82 K
8422.30.10
CAN-SEALING MACHINES
Section 301 3A
Tariff originally proposed: 25%
Tariff currently in place: 10%
$14.4 M
(Value of trade available only 6-digit)
$ 1.44 M
8422.30.30
OTHER PACKING MACHINES
Section 301 3A
Tariff originally proposed: 25%
Tariff currently in place: 10%
$14.4 M
(Value of trade available only 6-digit)
$ 1.44 M
8422.30.90
OTHER SEALING AND PACKING MACHINES
Section 301 3A
Tariff originally proposed: 25%
Tariff currently in place: 10%
$14.4 M
(Value of trade available only 6-digit)
$ 1.44 M
8422.40.00
PACKING OR WRAPPING MACHINERY (INCLUDING HEAT-SHRINK WRAPPING MACHINERY), NESOI
Section 301 3A
Tariff originally proposed: 25%
Tariff currently in place: 10%
$5.8 M
$ 580 K
8422.90.20
PARTS OF BEVERAGE AND LIQUID BOTTLING AND FILLING EQUIPMENT
Section 301 3A
Tariff originally proposed: 25%
Tariff currently in place: 10%
$8.04 M
(Value of trade available only 6-digit)
$ 804.3 K
8422.90.90
OTHER 84.22 PARTS FOR MACHINES
Section 301 3A
Tariff originally proposed: 25%
Tariff currently in place: 10%
$8.04 M
(Value of trade available only 6-digit)
$ 804.3 K
8434.10.00
MILKING MACHINES
Section 301 3D
Tariff originally proposed and currently in place:
5%
$24.7 K
$1.2 K
8434.20.00
DAIRY MACHINERY
Section 301 3A
Tariff originally proposed: 25%
Tariff currently in place: 10%
$1.95 M
$195 K
8434.90.00
PARTS OF MILKING MACHINES AND DAIRY MACHINERY
Section 301 3D
Tariff originally proposed and currently in place:
5%
$6.5 M
$325.7 K
8435.10.00
PRESSES, CRUSHERS AND SIMILAR MACHINERY USED IN THE MANUFACTURE OF WINES, CIDER, FRUIT JUICES OR SIMILAR BEVERAGES
Section 301 3B
Tariff originally proposed: 20%
Tariff currently in place: 10%
$150.6 K
$15.1 K
8437.80.00
MACHINERY USED IN THE MILLING INDUSTRY OR FOR THE WORKING OF CEREALS OR DRIED LEGUMINOUS VEGETABLES, OTHER THAN FARM TYPE MACHINERY
Section 301 3B
Tariff originally proposed: 20%
Tariff currently in place: 10%
$593.6 K
$59.4 K
8438.20.00
MACHINERY FOR THE MANUFACTURE OF CONFECTIONERY, COCOA OR CHOCOLATE
Section 301 3A
Tariff originally proposed: 25%
Tariff currently in place: 10%
$454 K
$45.4 K
8438.30.00
MACHINERY FOR SUGAR MANUFACTURE
Section 301 3A
Tariff originally proposed: 25%
Tariff currently in place: 10%
$71.5 K
$7.15 K
8438.40.00
BREWERY MACHINERY
Section 301 3A
Tariff originally proposed: 25%
Tariff currently in place: 10%
$5.6 K
$0.56 K
8438.10.00
BAKERY MACHINERY AND MACHINERY FOR THE MANUFACTURE OF MACARONI, SPAGHETTI OR SIMILAR PRODUCTS
Section 301 3B
Tariff originally proposed: 20%
Tariff currently in place: 10%
$4.5 M
$454 K
8438.50.00
MEAT-AND POULTRY-PACKING PLANT MACHINERY
Section 301 3B
Tariff originally proposed: 20%
Tariff currently in place: 10%
$7.1 M
$714 K
8438.60.00
MACHINERY FOR THE PREPARATION OF FRUITS, NUTS OR VEGETABLES
Section 301 3C
Tariff originally proposed: 10%
Tariff currently in place:
5%
$7.8 M
$389.2 K
8438.80.00
MACH FOR INDUST PREPARATION OR MANUF OF FOOD OR DRINK, OTHER THAN MACH FOR THE EXTRACT OR PREPARAT OF ANIMAL OR FIXED VEG FATS OR OILS, NESOI
Section 301 3B
Tariff originally proposed: 20%
Tariff currently in place: 10%
$10.2 M
$1.02 M
8438.90.00
PARTS OF MACHINERY OF CHAPTER 84, NESOI, FOR THE INDUSTRIAL PREPARATION OR MANUFACTURE OF FOOD OR DRINK
Section 301 3B
Tariff originally proposed: 20%
Tariff currently in place: 10%
$6.7 M
$671 K
Subtotal
$6.79 M
