Yesterday, the Trump administration announced that it will raise its 10 percent Section 301 tariffs on $200 billion worth of Chinese goods (List 3) to 25 percent at 10:01 a.m. eastern time this Friday. The action came after president decided earlier this week to increase the tariffs and initiate steps to impose a new 25 percent duty on another $325 billion in Chinese products (List 4).
The National Marine Manufacturers Association cautioned that the move will have a negative impact on companies in the marine industry. “It’s disappointing to watch the administration continue to use tariffs as a negotiating too, hurting the recreational boating industry and broad swaths of the U.S. economy,” Thom Dammrich, NMMA president, said in a statement. “As we have said repeatedly, China must be held accountable for its unfair trade practices, which have put thousands of businesses at a competitive disadvantage. However, levying additional tariffs on the eve of negotiations — even with China’s backsliding on previously agreed-upon issues — risks prolonging the global trade war.”
The statement continued, “Regardless of any perceived negotiating leverage they may provide, tariffs are taxes paid by American families, workers and businesses — China does not foot the bill. And for nearly a year, marine manufacturers have suffered from higher costs on hundreds of commonly used components, materials and parts as a result of the administration’s Section 301 tariffs.”
Items on the third Section 301 list that leave China before 12:01 a.m. eastern time on Friday will not be subject to the increased tariffs.