Proposed Modifications to Section 301 China Tariffs

The U.S. Trade Representative (USTR) recently completed the 4-year review on the Section 301 China tariffs. In announcements by the USTR and President Biden, the tariffs will remain in place with some proposed modifications, open for public comment from May 29 to June 28, 2024. The latest announcement includes lists of Harmonized Tariff Schedule numbers.

Key Points and Proposed Modifications to the Tariff Action:

• Products from China currently subject to Section 301 tariffs, should remain in place.
• Certain commodities of China in strategic sectors: Battery Parts, EVs, Facemasks, Lithium-Ion EV batteries, Medical Gloves, Graphite, Critical Minerals, Magnets, Semiconductors, Cranes, Solar Cells, Steel and Aluminum Products, and Syringes and Needles are to be subject to increased tariffs of rates ranging from 25% to 100%. See Annex A
• Exclusion process to be established for machinery used in domestic manufacturing, (Chapter 84 and Chapter 85 of the Harmonized Tariff Schedule of the United States.) See Annex B
• Grant 19 temporary exclusions for certain solar manufacturing equipment. See Annex C