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US begins accepting product exclusions from China tariffs


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US begins accepting product exclusions from China tariffs

The Office of the U.S. Trade Representative has begun accepting product exclusions from the Trump administration's controversial tariffs on $34 billion worth of imports from China that went into effect at midnight July 6, the agency said.

According to the USTR's office, companies and individuals have until Oct. 9 to file a product exclusion request, which must include the annual quantity and value of the imported product from China over the last three years.

In its exclusion decision, the agency will consider whether a product is available from a country other than China, whether the tariffs would harm the company or other U.S. interests, and whether the product is related to Chinese industrial programs.

After requests are publicly posted online, other parties can respond to the request within 14 days in either support or opposition. A reply to that response must be submitted within the seven days of the close of the 14-day response period.

Exclusions will be effective for one year following the determination, and they will apply retroactively to July 6.

China met the United States' 25% tariff on $34 billion worth of Chinese imports with retaliatory 25% tariffs on $34 billion of U.S. goods. Retailers, producers and companies that source heavily from China — where inputs and finished products are generally less expensive than those produced in the U.S. have expressed concern that the tariffs on Chinese imports could disrupt supply chains and increase costs for both producers and consumers.

According to Panjiva Research, a division of S&P Global Market Intelligence, the impacted products include $1.56 billion of automotive products, $1.39 billion of personal computer components, $869 million of fuel pumps and $788 million of construction equipment parts imported in the year ending April 30.

President Donald Trump has threatened an additional $516 billion of tariffs on Chinese goods, on top of the $34 billion batch that went into effect July 6.