Section 301 Tariffs Increase Delayed

Aug. 5, 2024
By: Chaney A. Finn

In light of a wave of comments from stakeholders on the new and increased scope of Section 301 duties on Chinese goods implementation of the new rules has been delayed. Initially scheduled to be implemented August 1, 2024, the United States Trade Representative (USTR) now expects to publish its final determination on the tariffs changes sometime in August, with the effective date being two weeks afterwards. This is to allow time for the agency to respond to all of the comments. The delay only applies to the modified duties, not the exclusion process.

As way of background, Section 301 tariffs on Chinese goods were increased as a result of the USTR’s four-year review of the duties which concluded that China has not eliminated its technology transfer related acts, policies, and practices, which continue to impose a burden or restriction on U.S. commerce. This conclusion resulted in the continuance of the duties with some even being increased.

There is no indication of the nature of the public comments, however, the USTR’s review was subject to substantial Congressional pressure and elevated interest from the importing community. The tariff increase pertains mostly to clean energy, EVs, semiconductors and steel and aluminum while the exclusion process targets domestic manufacturing products and solar manufacturing equipment.

Click here to view the proposed HTS codes subject to the Section 301 increase which is provided for in Annex A of the USTR notice.

Please contact any attorney at Barnes Richardson and Colburn should you have any questions surrounding the applicability of 301 tariffs or any other trade-related questions.