US-China Trade: New Sanctions

The United States and China continue to snipe at one another through their export and import laws. The latest actions appear to have the potential to affect the aviation community.

US Import Tariff Increases

The United States announced increased import duties for certain goods imported from China. Duties are paid by the U.S. importers, so the tariffs that impose these duties are intended to incentivize importers to source their goods from nations other than China.

The new tariff changes were proposed by the USTR on May 28, and they are open for comment through June 28, 2024. The new tariffs changes that are most likely to affect the aerospace industry include (this is a partial list only!):

Good	Tariff Codes	Old Tariff	New Tariff	Proposed Effective Date
certain steel and aluminum products	many codes in headings 7206 – 7229, 7301-7306, and 7601-7609	0-7.5%	25%	August 1, 2024
Certain electronic integrated circuits	8542.31.00 8542.32.00 8542.33.00 8542.39.00 8542.90.00	25%	50%	January 1, 2025
lithium-ion batteries (non-EV)	8507.60.00220	7.5%	25%	January 1, 2026
battery parts	8507.90.40	7.5%	25%	August 1, 2024

Chinese Export Restrictions

Reuters is reporting that China’s Commerce Ministry has announced new export controls on certain aviation components. The new regulations will impose licensing requirements on additional aviation components. These will apparently apply beginning on July 1, and are intended to protect China’s national security and interests.

Earlier today, Chinese Premier Li Qiang emphasized China’s rule-of-law approach. He called on Chinese government officials to raise their awareness of the rule of law and perform their duties in accordance with the law to ensure law-based government work. This seems likely to cause stricter adherence to China’s export restrictions.

ASA reviewed releases from the Ministry of Commerce and the State Council but could not yet find the details of these export restrictions. We will continue to monitor for details.