Changes Proposed to Section 301 China Tariffs

On May 14^th, the U.S. Trade Representative released a statement on the review of the Section 301 China tariffs.

“After thorough review of the statutory report on Section 301 tariffs, and having considered my advice, President Biden is directing me to take further action to encourage the elimination of the People’s Republic of China’s unfair technology transfer-related policies and practices that continue to burden U.S. commerce and harm American workers and businesses,” said Ambassador Katherine Tai. 

The recommendations laid out in the report:

• Products from China currently subject to the Section 301 tariffs should remain 
• Add or increase tariffs for certain products; see Table A below
• Establish an exclusion process targeting machinery used in domestic manufacturing (Chapter 84 and Chapter 85 of the Harmonized Tariff Schedule of the United States (HTSUS)); see Appendix K of the review
• Proposal for 19 exclusions for certain solar manufacturing equipment; see Appendix L of the review
• Allocate funds to U.S. Customs for greater enforcement of Section 301 actions
• Greater collaboration and cooperation between private companies and government to combat state-sponsored technology theft.
• Continue assessing approaches to support diversification of supply chains to enhance our own (U.S.) supply chain resilience.

The USTR is expected to issue a Federal Register notice next week with information on a comment period for the proposed modifications.  

Table A