U.S. Customs agency allows grace period for goods subject to China tariff hike

U.S. President Donald Trump's tariff increase to 25 percent from 10 percent on $200 billion of Chinese goods will not apply to U.S.-bound cargoes that leave China before 12:01 a.m. on Friday, U.S. Customs and Border Protection said on Thursday.

The tariff increase notice issued by the agency allows for a grace period that gives shippers a bit more time for goods already in transit before the higher rate is charged, a CBP spokeswoman said.

If goods are already shipped when the midnight deadline passes, they are considered exported to the United States and will be subject to the 10 percent tariff, the spokeswoman said. 

(With inputs from agencies.)