The U.S. Trade Representative (USTR) announced that the current Section 301 tariff of 15% on List 4A Chinese products will be reduced to 7.5 percent. Li-ion rechargeable batteries, such as those manufactured by Phasium, are on the list for tariff relief. This reduction, entered into force on February 14, 2020, formally published in the linked Federal Register notice, covers all HTS subheadings in Annex A of the August 20, 2019 Federal Register notice first implementing these duties.
This reduction is the result of the United States and China signing their “phase one” trade agreement on January 15, 2020. This is a positive step toward mutually beneficial trade agreements, but it does not affect many other power electronic products that Phasium manufactures; therefore, we will proceed with plans to mitigate the risks associated with trade conflicts and actively monitor and notify our customers of changes to the trade agreements.