Share with your friends

China: Additional tariffs on $60 billion worth of U.S. imports

China: Additional tariffs, $60 billion of U.S. imports

China’s government on 13 May 2019 published a circular that announces increases to the tariffs on certain U.S. imports, effective 1 June 2019.


Related content

The increased tariffs are being imposed on approximately $60 billion worth of goods originating in the United States and imported into China. The tariffs are in response to tariff actions by the United States under Section 301 of the Trade Act of 1974.

China’s Tariff Committee Circular (2019) No. 3 announces the increases of the retaliatory tariffs on $60 billion worth of U.S.-originated goods imported into China and based on four lists of commodities. These four lists include more than 4,000 categories of eight-digit tariff codes. The identified products will be subject to retaliatory tariff rates of 5%, 10%, 15%, and 25% (originally announced in August 2018), compared to the current effective customs duty rates of 5% and 10%. 

Exclusion process

China’s Ministry of Finance also on 13 May 2019 issued a release about a “trial” exclusion process for additional tariffs on U.S. importsThis process is reported to be similar to one provided in the United States, in that it stipulates the applicable scope and detailed application procedure for Chinese importers that would like to claim an exclusion from the retaliatory tariff provisions.

Under this exclusion process, the timeframe of application of an exclusion would be:

  • 3 June to 5 July 2019—for the first batch of imports subject to the $34 billion list and $16 billion list
  • 2 September to 18 October 2019—for second batch of imports subject to the $60 billion list

Imports that were already excluded from retaliatory tariffs (or that temporarily have ceased to be subject to retaliatory tariffs, such as vehicle and auto parts of U.S. origin) are not within the scope of the new exclusion process.

  • Period for an approved exclusion: The period during which an exclusion is valid will be one year after the date of approval. Importers may apply for a refund of the amounts of any retaliatory tariff within six months after the imports are approved for the exclusion. 
  • Considerations by the China government when assessing the exclusion application: (1) the importer cannot find substitutive products from other countries outside of the United States; the additional tariff duties would cause severe economic harm to the requestor; (3) the additional duties would cause severe structural implications (including the development of particular industry, technology development, employment, environment protection) or “negative consequences” to Chinese society.


For more information, contact a KPMG trade and customs professional in China:

Eric Zhou | +86 10 8508 7610 |

Rachel Tao | +86 21 2212 3473 | 


To learn more about KPMG’s Trade & Customs Services, contact:

Doug Zuvich Partner and Global Practice Leader T: 312-665-1022 E:

John L. McLoughlin Principal and East Coast Leader T: 267-256-2614 E:

Andy Siciliano Partner and National Practice Leader T: 631-425-6057 E:

Luis (Lou) Abad Principal, Washington National Tax T: 212-954-3094 E:

Irina Vaysfeld Principal T: 212-872-2973 E:

Amie Ahanchian Managing Director T: 202-533-3247 E:

Robert Waldrop Principal T: 212-954-8117 E:

Gisele Belotto Managing Director T: 305-913-2779 E:

Christopher Young Principal T: 312-665-3229 E:

Andy Doornaert Managing Director T: 313-230-3080 E:

George Zaharatos Principal T: 404-222-3292 E:

Jessica Libby Managing Director T: 612-305-5533 E:

© 2021 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

KPMG refers to the global organization or to one or more of the member firms of KPMG International Limited (“KPMG International”), each of which is a separate legal entity. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. For more detail about our structure please visit

Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal