Industry News

USTR Announces Section 301 Tariffs Will Continue

 

On September 2, 2022, the Office of the United States Trade Representative confirmed that representatives of domestic industries benefiting from the tariff actions in the Section 301 investigation of China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation have requested continuation of the tariffs. Accordingly, as required by statute, the tariffs did not expire on their four-year anniversary dates and USTR will proceed with the next steps as provided in the statute.

USTR’s formal notice of the continuation may be found here. Details on the next steps in the four-year review process will be set out in subsequent notices.

In May 2022, USTR commenced the statutory four-year process by notifying representatives of domestic industries that benefit from the tariff actions of the possible termination of those actions and of the opportunity for the representatives to request continuation. Because requests for continuation were received, the tariff actions have not terminated and USTR will conduct a review of the tariff actions.

China Tariffs Continued but White House Stays Silent on Changes (via ST&R)

Section 301 tariffs on hundreds of billions of dollars’ worth of imports from China remain in effect following numerous requests by domestic industries benefiting from them, according to a Sept. 2 notice from the Office of the U.S. Trade Representative. However, despite months of speculation, there is still no word from the White House on whether or when there might be changes to those tariffs.

USTR said it will now conduct a review of the tariffs that will solicit comments from all interested persons on issues such as the effectiveness of the tariffs in achieving the objectives of Section 301, other actions that could be taken, and the effects of the tariffs on the U.S. economy, including consumers. USTR states that details on this process “will be set out in subsequent notices,” and it is not known when that may occur or if there is any specific timeframe associated with it.

The announcement comes as the trade community continues to wait for word from the White House on potential changes to the China tariffs. There has been speculation for months about the nature and timing of such changes, which at one point were thought to possibly include a lowering of tariffs on some consumer items in response to rising domestic inflation. However, observers have opined more recently that increasing tensions in the U.S.-China relationship as well as the rapidly approaching U.S. midterm elections may have put any such changes on hold for the time being.

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