Trump's China trade war tariff exemption expires this week, U.S. companies have to pay more for taxes

U.S. companies will have to pay higher taxes on certain products imported from China because the tariff relief measures that protect many companies from the impact of President Trump’s trade war will expire at midnight on Thursday.

The New York Times reported that Mr. Trump began imposing tariffs on more than $360 billion of Chinese goods in 2018, causing thousands of companies to request the government to temporarily exempt them from the scope of taxation. Companies that meet certain requirements can be exempt from tax, and the tax increase ranges from 7.5% to 25%. These companies include companies that import motors, microscopes, salad governors, thermostats, breast pumps, ball bearings, forklifts and other products.

However, most of these excluded commodities may generate billions of dollars in revenue for US-based companies, and the exemption will automatically expire at midnight on Thursday. Since then, many companies have to pay taxes to the government again in order to import a variety of goods from China, including textiles, industrial components and various other products.

The Trump administration’s lack of a clear understanding of whether it will expand the scope of exclusions has put many companies in trouble.

The United States has announced some extension measures-the trade representative said on December 23 that it will extend the exclusion period for a small class of medical products including hand sanitizers, masks and medical equipment to March 31 to help with The US coronavirus pandemic.

However, the freight forwarder, US Customs Director of Robinson Logistics, Ben Bidwell, has been helping customers apply for exemptions. He said that "the vast majority" of the approved ones will expire at the end of this year, giving importers Left a deep worry. Depending on the product, an additional tariff of 7.5% or 25% will be imposed.