The Office of the United States Trade Representative (USTR) released the Section 301 list against 1,300 products from China valued at approximately $50 billion. These tariffs were ordered in retaliation for the “harm to the US economy” from certain Chinese industrial and intellectual property policies. USTR proposes imposing an additional 25% tariffs on the listed products, which include brewing equipment, specifically under section 84384000, “Brewery machinery for the industrial preparation or manufacture of food and drink not elsewhere specified.” View the full U.S. retaliation list.
U.S. Tariffs and Brewery Equipment
Breweries and breweries in planning that purchase tanks and other equipment from China could see a 25% increase in cost due to the tariffs. USTR has not set a specific deadline for implementing the new tariffs, but said it will provide “final options” to President Trump after the comment and hearing process conclude. The tariffs are unlikely to take effect before late May, and could be delayed further.
In response, China issued a list of tariffs against $50 billion in U.S. goods, including soybeans and small aircraft, which immediately caused the Trump Administration to order USTR to determine whether an additional $100 billion in tariffs is necessary. The product scope of the $100 billion in tariffs has not been announced.
Although U.S.-China relations are tense at present and negotiations are not currently yielding public results, President Trump stated that, “We’ll be negotiating with China . . . our relationship is very good with China, and we intend to keep it that way, but we have to do something to seriously relieve the trade deficit.”
The Brewers Association will continue to monitor this issue and alert our members as more information is made available. If you have any questions please don’t hesitate to reach out to the BA’s Federal Affairs Manager Katie Marisic.