Implementation of Section 301 Tariffs Gets Short Reprieve
Implementation of Section 301 China tariffs has been delayed by a few weeks, according to the Office of the U.S. Trade Representative (USTR).
USTR said on Tuesday that it has received more than 1,100 comments from the public, and is continuing its review. It also said that in consultation with the Section 301 committee, it expects a final determination will be issued August 2024.
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“USTR expects that the modifications slated for 2024 will take effect approximately two weeks after it makes the final determination public,” the office said in its Tuesday statement.
President Joseph Biden in May said he is maintaining tariffs imposed by his predecessor, President Donald Trump, on more than $300 billion worth of Chinese goods that include finished textiles and apparel imports. The decision follows a statutory four-year review of the tariffs, which were put into effect in 2018 after a USTR probe found that certain China’s trade practices and policies were either either discriminatory or burdened U.S. companies and workers. The tariffs were imposed on a certain Chinese imports.
At the time, trade groups such as Retail Industry Leader Association (RILA), National Retail Federation (NRF) and American Apparel & Footwear Association (AAFA) weighed in and voiced their unhappiness with the decision to maintain tariffs on consumer goods. The gist of their frustration centered on how continuing tariffs places additional taxes on imported goods paid by U.S. importers and, ultimately, American consumers.
USTR hasn’t given any idea on what some of the more than 1,100 comments stated, or if there are any general themes. And Tuesday’s statement provided no indication of what sway those comments might have on the current plan that would have been implemented on Aug. 1 but for the delay.
“We are glad to see that USTR is taking the time to thoroughly review the comments before moving forward with the modifications. For retailers, the fact remains that Section 301 tariffs on consumer goods are harmful to U.S. consumers and businesses. As they continue working through the comments, we hope USTR reconsiders their approach,” Blake Harden, RILA’s vice president of international trade, said on Wednesday.
“Regrettably, U.S. tariff policy remains flawed. We hope that the administration uses this extra time to realize that the Section 301 tariffs have failed—have failed to rein in China’s bad practices, have failed to support U.S. workers, and have failed to help American consumers, particularly during a time of elevated prices. Doubling down on this failed policy will only increase inflation and hurt hardworking American families,” Steve Lamar, AAFA’s president and CEO, said. “It’s time for a fresh approach that adequately and accurately supports U.S. workers and consumers, while predictability advancing U.S. trade policy objectives.”
The National Electrical Manufacturers Association (NEMA) is the largest trade association of electrical equipment, and its members are leading the transition to an all-electric future via domestic manufacturing of clean energy and advanced technology goods. NEMA in the past has urged a “balanced approach that maintains domestic supply chains and competitiveness.” It said on Wednesday that it had requested in public comments for a delay on implementation of Section 301 to allow for adequate review of the statements and careful consideration on decisions over tariff policy that will impact domestic production.