US extends tariff exclusions till year-end

The US Trade Representative’s office said on Tuesday it has extended China tariff exclusions for a wide range of goods, including smart watches and certain medical masks, through the end of 2020, rather than renewing the previous one-year extensions.

In a Federal Register notice, USTR said the extensions applied to products excluded from “Section 301” tariffs imposed by US President Donald Trump a year ago on a range of Chinese consumer goods amid tense trade negotiations between the world’s two largest economies. The tariffs on some US$125 billion worth of goods were set at 15 percent, then lowered to 7.5 percent by the Phase 1 deal signed in January.

The products included a number of Bluetooth and wearable data-transmitting devices, such as those imported from China by Apple Inc, FitBit, Sonos and other technology companies.

Also on the list of extended exclusions were a number of face masks, respirators and other medical products, including stethoscope covers, cotton gauze sponges and blood pressure cuff sleeves. Products ranging from upright pianos to liquid crystal display modules and stainless steel watch cases also were excluded until year-end.

USTR had previously granted one-year exclusions from the tariffs. The Federal Register notice did not indicate a specific reason for extending the exclusions for only four months.

“The US Trade Representative will take account of the cumulative effect of exclusions in considering the possible further extension of the exclusions covered by this notice, as well as possible extensions of exclusions of other products covered by the action in this investigation,” the agency said.

Last week, Chinese Vice Premier Liu He and US Trade Representative Robert Lighthizer held a phone talk, reaffirming their commitment to the trade deal.