U.S. Tariffs On Chinese Imports: An Analysis Of Sectors Potentially Impacted By ‘List 4’

Despite trade talks resuming in the aftermath of the G20 summit, the risk of further tariffs remains

On May 10, the Office of the U.S. Trade Representative (USTR) issued a notice proposing additional ad valorem tariffs of up to 25 percent on USD 300 billion worth of goods imported from China, commonly referred to as “List 4” in relation to Section 301 of the Trade Act of 1974. In the aftermath of the recent G20 Summit, the U.S. has agreed to delay issuing tariffs on Chinese imports in exchange for China making unspecified new purchases of U.S. agricultural products.

This report takes a look at the potential impact that the List 4 tariffs pose to major manufacturing industries – such as machinery, metals, chemicals, and transport – if it were to be enacted. The analysis focuses particularly on major raw materials, intermediate parts, and consumer goods with U.S. import value of over USD 20 million and for which China is a major exporter. The report identifies a number of industries that have been left out of the List 4 tariffs, and outlines a set of recommendations for supply chain professionals to help navigate through the uncertainty.