Industry News

Section 301 Tariffs to Remain, Increase in Some Industries

May 14, 2024
By: Marvin E. McPherson


Section 301 Tariffs to Remain, Increase in Some Industries

By Marvin E. McPherson

After months of Congressional pressure and elevated interested from the importing community, the United States Trade Representative’s office has released its four-year review of the Section 301 duties imposed on products of China. The report calls for retaining the Section 301 duties in place, as well as increasing duties on entire classes of imported goods from China.

While the rationales and proposed actions are in the 193-page report, but the White House also issued a more user-friendly fact sheet summarizing the action. Summarizing the summary, the proposed actions going forward include:

Battery parts (non-lithium-ion batteries)

Increase rate to 25% in 2024

Electric vehicles

Increase rate to 100% in 2024

Facemasks      

Increase rate to 25% in 2024

Lithium-ion electrical vehicle batteries         

Increase rate to 25% in 2024

Lithium-ion non-electrical vehicle batteries

Increase rate to 25% in 2026

Medical gloves           

Increase rate to 25% in 2026

Natural graphite

Increase rate to 25% in 2026

Other critical minerals

Increase rate to 25% in 2024

Permanent magnets

Increase rate to 25% in 2026

Semiconductors         

Increase rate to 50% in 2025

Ship to shore cranes   

Increase rate to 25% in 2024

Solar cells (whether or not assembled into modules)

Increase rate to 50% in 2024

Steel and aluminum products

Increase rate to 25% in 2024

Syringes and needles             

Increase rate to 50% in 2024

  
Many questions remain for importers, including the scope of steel and aluminum products. The USTR will issue a Federal Register notice announcing procedures for interested persons to comment on the proposed modifications and information concerning an exclusion process for machinery used in domestic manufacturing. 

If you have any questions surrounding the applicability of 301 tariffs or would like help submitting comments to the USTR, please contact any attorney at Barnes Richardson and Colburn.