List 3 Tariff Update
June 3, 2019
Late on Friday, the United States Trade Representative (USTR) put out a release stating that the increase for the List 3 tariffs from 10 percent to 25 percent, scheduled to take place on June 1, has been delayed until June 15. USTR had provided a “grace period” for shipments that were made prior to the May 10 tariff increase but wouldn’t arrive until June 1. A notice will be published in the Federal Register this week.
To complicate the matter, the U.S. Customs and Border Protection issued a CSMS message stating that they have not yet updated ACE to reflect the extension. The message went on to say that they will publish additional guidance when the FR notice is published and ACE is updated.
This delay, while welcome, came during another volatile week concerning trade. In an effort to stop the flow of migrants coming into the U.S., President Trump threatened to place a 5-percent tariff on all goods coming from Mexico, beginning June 10. The tariff will gradually increase until the flow of migrants is stopped. Additional details will be forthcoming as they are made available.