U.S. Proposes 10% Additional Tariff on Chinese Fiber, Yarn, and Fabric

On July 6, 2018, in response to unfair Chinese practices, the United States began imposing tariffs of 25 percent on approximately $34 billion worth of Chinese imports. These tariffs will eventually cover up to $50 billion in Chinese imports as legal processes conclude. The products targeted by the tariffs are those that benefit from China’s industrial policy and forced technology transfer practices.

China has since retaliated against the United States by imposing tariffs on $34 billion in U.S. exports to China, and threatening tariffs on another $16 billion. The U.S. claims that China did this without any international legal basis or justification. As a result of China’s retaliation and failure to change its practices, the President has ordered USTR to begin the process of imposing tariffs of 10 percent on an additional $200 billion of Chinese imports. The U.S. maintains that this is an appropriate response under the authority of Section 301 to obtain the elimination of China’s harmful industrial policies. This latest list includes just about every textile fiber, yarn, fabric, and carpet (but not apparel or home textiles).