USIFI and NFI help influence USTR issued tariffs in response to unfair trade practices by China

On June 15, the Office of the U.S. Trade Representative (USTR) issued a list of products that will be subject to an additional duty of 25 percent as a part of the U.S. response to China’s unfair trade practices related to intellectual property abuses. The list covers 1,102 separate 8-digit U.S. tariff lines valued at approximately $50 billion in 2018 trade values and is broken into two sections.

USIFI and NFI are pleased that USTR largely took our feedback regarding textile machinery and removed nearly all lines in this category from the finalized list.

In terms of textile products, the new list includes around ten lines in Chapter 39 that cover textiles coated with plastics as well as one additional machinery-related line (8420.99.10 – parts of calendering or rolling machines for processing textiles).

Although some industrial textiles were included, we are disappointed that our input regarding adding textile and apparel products was not reflected to a larger degree in this second set of products. Notably, USTR stressed in their press release that this list does not include goods “commonly purchased by U.S. consumers.” Their purposeful avoidance of consumer goods presumably factored into the fact that finished textile and apparel products were not proposed. Nonetheless, USIFI and NFI will continue to press for inclusion of these items in any subsequent list and will closely monitor this issue.