Exclusions to Trump China tariffs likely to expire

WASHINGTON — U.S. companies were facing the prospect of higher taxes on some of the products they import from China, as the tariff exclusions that had shielded many businesses from President Donald Trump’s trade war were set to expire at midnight Thursday.

Trump began placing tariffs on more than $360 billion of Chinese goods in 2018, prompting thousands of companies to ask the administration for temporary waivers excluding them from the levies. Companies that met certain requirements were given a pass on paying the taxes, which range from 7.5 percent to 25 percent. Those included firms that import electric motors, microscopes, salad spinners, thermostats, breast pumps, ball bearings, fork lifts and other products.

But the bulk of those exclusions, which could amount to billions in revenue for businesses based in the United States, were set to automatically expire at midnight Thursday. After that, many companies will have to again pay a tax to the government to import a variety of goods from China, including textiles, industrial components and other assorted products.

The Trump administration could still extend the exclusions but had not given any indication of whether it would late Thursday, leaving many companies in limbo. The Office of the U.S.

Trade Representative did not respond to requests for comment about the exclusions.

The United States has announced some extensions — on Dec. 23, the trade representative announced that it would extend exclusions until March 31 for a small category of medical care products, including hand sanitizer, masks and medical devices, to help with the battle against the coronavirus pandemic.

But Ben Bidwell, the director of U.S. customs at the freight forwarder C.H. Robinson, who has been helping clients apply for exclusions, said that “the large majority” of those that had been granted would expire at the end of the year, leaving importers with either an additional 7.5 percent or 25 percent tariff, depending on their product.

The U.S. trade representative had been “rather silent about any type of extension,” Bidwell said.

Lawmakers have lobbied the administration to extend the waivers. On Dec. 11, more than 70 members of Congress, including Rep. Jackie Walorski, R-Ind., and Ron Kind, D-Wis., sent a letter urging Robert Lighthizer, the U.S. trade representative, to extend all of the active exclusions to help businesses that have been hurt by the pandemic.