China today issued a new round of punitive, retaliatory tariffs against U.S. products as the latest move in an escalating trade dispute. Last week, the United States raised tariffs on $200 billion in Chinese imports.

The new Chinese tariffs on selected dairy products will become effective on June 1, according to China's Taxation Committee Announcement No. 3 of 2019, released today.  The additional tariffs will be imposed on shipments based on the date of Customs declaration in the port of entry, giving no grace period for shipment on the water.

Download the announcement in Chinese here. USDEC market access staff in Arlington, Va., have reviewed the announcement and identified key facts affecting USDEC members:

• The 25% retaliatory tariff on all goods of Chapter 4 from July 6, 2018, remains in effect with no additional punitive tariffs. 
• Some of the most notable tariff increases are on lactose (20% on June 1, currently 15%) and infant formula (30% on June 1, currently 15%).
• The retaliatory tariff on milk albumin, including WPC 80% or greater, and milk protein concentrates 85% or more, remains at levels imposed on Sept. 24, 2018. 

See Volume 1 of the Export Guide for the full listing of new tariffs.

Recommended action: USDEC advises members exporting to China to view the new tariffs to guide your future business strategy. No one can predict with confidence how long the tariffs will remain in place, reducing the competitiveness of U.S. dairy exports.

Updates: USDEC is providing ongoing, password-protected updates on trade actions between the United States and China to members on the Hot Topics section of usdec.org. Urgent news that will require member action will be sent by email and posted in Member Alerts. Global Dairy eBrief, USDEC's Friday newsletter, will provide a recap.

Questions: For technical questions related to the proposed tariff increase, please contact Eddy Fetzer at efetzer@usdec.org, 703-528-3049 or Bryan Jacoby at bjacoby@usdec.org. For trade policy questions, please contact Jaime Castaneda (jcastaneda@usdec.org) or Shawna Morris (smorris@usdec.org).