USTR Delays Tariffs on Ceiling Fans and LEDs

Earlier today, the USTR announced the next steps of implementing the additional 10 percent tariff on goods coming from China worth $300 billion, also known as List 4. This move offers clarity following the President’s Aug. 1 Twitter statement that List 4 would have a 10 percent tariff beginning Sept. 1.

List 4 includes ceiling fans, LEDs, other light sources and accessory items and was proposed in mid-May.

As a result of Eric Jacobson’s testimony before the Section 301 committee and ALA’s submitted public comments, the 10 percent tariff on ceiling fans and LEDs has been delayed until Dec. 15.

In determining the delayed effective date for ceiling fans and LEDs, USTR reviewed the import percentages of each product and found that 75 percent or more of the 2018 U.S. imports of each product were from China. Jacobson testified directly on this point which was supported in ALA’s comments.

Unfortunately, the 10 percent tariff for other light source categories and accessory items will still take effect on Sept. 1.

“The ultimate goal is to have all of the tariffs removed. Today’s move proves that USTR is finally recognizing that tariffs are nothing more than taxes paid for by American consumers. ALA is pleased that the tariffs on LEDs and ceiling fans have been delayed, but we would have liked for all lighting related HTS codes to be delayed until December,” Jacobson said after hearing news of the announcement.

These 10 percent tariffs, regardless of effective date, are in addition to any existing tariff rate.

All effected HTS codes can be reviewed on the USTR’s website: List 4A (Sept. 1) and List 4B (Dec. 15).

The formal notice should be published in the Federal Register by the end of the week.

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