Wednesday, May 27, 2020

Secretary Pompeo Declares Hong Kong No Longer Autonomous, Potentially Leading to China 301 Tariffs on Goods from Hong Kong

On May 27, 2020, U.S. Secretary of State Michael R. Pompeo, certified to Congress that "Hong Kong does not continue to warrant treatment under United States laws in the same manner as U.S. laws were applied to Hong Kong before July 1997." This has serious implications for U.S. importers who shifted sourcing from mainland China to Hong Kong to avoid China 301 tariffs, as Agathon Associates noted in an August 28, 2019 post about the Hong Kong Policy Act. So far Hong Kong has been treated separately from China as regards imposition of 301 tariffs. That can be revoked, and quickly, by an Executive Order from the President.

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