White House Announces Further Section 301 Tariff Hikes on Chinese Goods

Today the White House announced sweeping new tariffs on Chinese goods. The tariffs will apply to a range of sectors including semiconductors, steel and aluminum, batteries, and medical products.

Electric vehicles were a focus of the announcement, with tariffs to increase from 25% to 100% this year.

Impacted Industries

The new tariffs apply to $18 billion worth of Chinese imports in the following sectors:

  • Steel and aluminum – increase from 0-7.5% to 25% in 2024
  • Semiconductors – increase from 25% to 50% by 2025
  • Electric vehicles (TVs) – increase from 25% to 100% in 2024
  • Batteries
    • Lithium-ion EV batteries – increase from 7.5% to 25% in 2024
    • Lithium-ion non-EV batteries – increase from 7.5% to 25% in 2026
    • Battery parts – increase from 7.5% to 25% in 2024
    • Natural graphite and permanent magnets – increase from 0% to 25% in 2026
    • Certain critical minerals – increase from 0% to 25% in 2024
  • Solar cells – increase from 25% to 50% in 2024
  • Ship-to-shore cranes – increase from 0% to 25% in 2024
  • Medical products
    • Syringes and needles – increase from 0% to 50% in 2024
    • Certain PPE products – increase from 0-7.5% to 25% in 2024
    • Rubber medical gloves – increase from 7.5% to 25% in 2026

Why Now?

The announcement follows a statutorily required two-year government review of “Section 301” duties that were first imposed during the Trump Administration. The Special 301 review considers the current state of global IP protection and enforcement, unfair innovation policies, and market access barriers. […]

By |2024-06-20T21:36:05-04:00May 14, 2024|301 INVESTIGATIONS, Special 301, U.S. Trade Representative (USTR)|Comments Off on White House Announces Further Section 301 Tariff Hikes on Chinese Goods

Upcoming Deadline to File Comments: USTRs Section 301 China Tariff Exclusions Proceeding

On December 26, 2023, the Office of the United States Trade Representative (“USTR”) announced that it will extend 352 reinstated exclusions and 77 COVID-related exclusions on goods from China until May 31, 2024.

The exclusions refer to additional duties imposed on goods from China pursuant to an earlier Section 301 investigation of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation.

In December 2022, the agency determined to extend the exclusions and extended them again in May 2023 and September 2023 through December 31, 2023. This latest Federal Register notice announces the agency’s determination to further extend the exclusions until May 31, 2024 and open up the ability to comment on the exclusions. The public docket will open on January 22, 2024 and will close on February 21, 2024.

This latest extension provides USTR additional time to orderly phase out certain exclusions and align others with the objectives determined during the agency’s ongoing four-year review of Section 301 China tariffs.

The agency also announced that it will open a docket to gather public comments on whether to further extend particular exclusions. The focus of the evaluation will be on:

  • The availability of products covered by the exclusion from sources outside China
  • Efforts undertaken to source products covered by the exclusion
  • Why additional time is needed
  • On what timeline, if any, the sourcing of products covered by the exclusion is likely to shift outside of China

USTR will also consider whether or not extending the exclusion will impact U.S. interests.

 Exclusion Background

In […]

By |2024-01-15T20:21:09-05:00January 5, 2024|China, Import, Special 301, U.S. Trade Representative (USTR)|Comments Off on Upcoming Deadline to File Comments: USTRs Section 301 China Tariff Exclusions Proceeding

Customs and Trade Law Weekly Snapshot

Here is a recap of the latest customs and international trade law news:

 

 

 

 

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Customs and Trade Law Weekly Snapshot

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CBP 

  • In Fiscal Year 2021, CBP at the LA/Long Beach Seaport seized More Than $760 Million in Counterfeit and Prohibited Products, a 652% increase over the previous year.
  • CBP issues guidance regarding the extension of product exclusions from additional Section 301 China duties on certain medical-care products to address COVID-19.
  • With changes to the HTSUS classification systems possibly coming as early as January 1, 2021, U.S. importers should review their classifications and ensure compliance with U.S. regulations

BIS

China

Customs and Trade Law Snapshot

Here is a recap of the latest customs and international trade law news:

The Bureau of Industry and Security (BIS) 

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Insight on Last 6 Months of Biden/Congress on Trade

A lot has happened in the first 6 months of the Biden administration. Notable developments include (at least temporary) resolutions in the large civil aircraft and digital service tax disputes, consensus around a global minimum corporate tax of 15%, lawsuits pertaining to Section 232, increased export controls enforcement, shifting U.S. policy stances on Cuba, and more. However, the most important developments pertain to the ongoing U.S.-China trade war. The U.S. and China are engaged in ongoing negotiations while tensions have risen, a lawsuit challenging Trump’s imposition of 301 tariffs are underway, and a massive U.S. competitiveness bill is being considered in Congress that could bring back broad China tariff exclusions. Join us for a jam-packed hour where we discuss everything that has happened in the world of U.S. trade policy over the past 6 months, and provide insight into how Biden’s trade policies affect industry.

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301 Exclusion Extensions for COVID-19 Related Products

On March 10, 2021, via Federal Register Notice ( 86 FR 13785), the United States Trade Representative (USTR) announced that 99 medical product exclusions will be extended from March 31, 2021, to September 30, 2021. This action extends a previous USTR action which extended these exclusions from December 31, 2020, to March 31, 2020 (85 FR 85831). […]

US Imposes Additional Tariffs on EU Goods

On Wednesday, January 6, 2021, the Office of the United States Trade Representative (USTR), announced the revision of its Section 301 Action: Enforcement of U.S. WTO Rights in Large Civil Aircraft Dispute (86 FR 674).

 

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USTR Announces Special 301 Review – Comments Due January 28

Special 301 Report

The United States Trade Representative (“USTR”) conducts an annual evaluation known as the Special 301 review. In the review, USTR identifies countries that deny adequate and effective protection of intellectual property (“IP”) rights or deny fair and equitable market access to U.S. persons who rely on IP protection. As a result of this review, trading partners that present the most significant concerns regarding IP rights are placed in one of three categories: 1) the Watch List, 2) the Priority Watch List, and 3) Priority Foreign Countries.

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By |2021-10-12T15:08:59-04:00January 7, 2021|Best Practices, China Trade War, Customs Expert, International Law, International Trade, Special 301|Comments Off on USTR Announces Special 301 Review – Comments Due January 28
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