The Office of the U.S. Trade Representative (USTR) has announced that it is extending the amount of time certain goods exported from China will have to enter the United States before an additional Section 301 tariff increase from 10 percent to 25 percent is imposed. As we reported on May 9, President Donald Trump moved to increase Section 301 import tariffs to 25 percent on the third tranche of Chinese products valued at approximately $200 billion as of May 10, 2019. On May 10, USTR clarified that shipments from China that were “on the water” (i.e., already in transit) would be excluded from this tariff rate increase so long as such products entered the United States before June 1. On May 31, USTR further revised this extension, noting that covered products exported from China to the United States before May 10, 2019, will remain subject to only the additional 10 percent tariff if they enter into the United States before June 15, 2019. This limited extension is intended to account “for customs enforcement factors and the transit time between China and the United States by sea.”