US-China Trade War Update: all printer cartridges affected

US-China Trade War Update

Editor: This update by Merritt Blakeslee follows two recent, previous reports provided by him on:
August 4, 2019: Trump’s Tariffs Target Cartridges and Components
July 1, 2019: Trump Tariffs Aftermarket Consumables
and a video interview between Blakeslee and David Gibbons on August 9, 2019.

On August 1, 2019, President Trump announced that the United States would impose a 10 percent tariff on US$300 billion worth of Chinese-made products beginning on September 1, and suggested that the tariff rate could later be raised to 25 percent.

Extending the so-called Section 301 tariffs to this additional US$300 billion worth of goods will impose tariffs on virtually all goods from China that come into the United States.

On August 14, the Office of the United States Trade Representative* (USTR), which administers the Section 301 tariffs, announced that a portion of the tariffs, most covering consumer items like laptops and smartphones, would be delayed until December 15 so as not to interfere with Christmas season buying in the United States.  The tariffs delayed until December 15 cover about US$189 billion in Chinese imports.

Those still scheduled to take effect on September 1 cover about US$111 billion.  Unfortunately for the printer consumables industry, the September 1 tariffs include both HTS 8443.99.50 and to HTS 8443.99.25, the only two HTS categories covering ink and toner cartridges and components that were not covered by the three previous rounds of tariffs.  HTS 8443.99.50 covers an ink or toner cartridge that can be used in a machine that performs at least two functions from among printing, faxing, and copying (or that can be used in at least two of a printer, fax machine, and copier), as well as components for such cartridges.  HTS 8443.99.25 covers individual components of a printer-only cartridge that are not part of not an “assembly.”

As of September 1, all ink and toner cartridges and components will be subject to a tariff of 25 percent ad valorem (the estimated value of the goods or transaction concerned) except for cartridges and components covered by HTS 8443.99.50 and to HTS 8443.99.25, which will be subject to a tariff of 10 percent ad valorem.

USTR has promised to announce procedures for requesting an exclusion from the new US$300 billion tariffs but as of this date (August 17, 2019) has not done so.

* The Office of the United States Trade Representative (USTR) is the United States government agency responsible for developing and recommending United States trade policy to the President of the United States, conducting trade negotiations at bilateral and multilateral levels, and coordinating trade policy within the government.

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