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Coalition Continuing Push to Exempt Imports From Wholly Owned Enterprises From Section 301 Tariffs

Importers should be reviewing options toward reducing the impact of any of the Section 301 tariffs on goods from China, Baker & McKenzie lawyer Ted Murphy said in a June 19 blog post. President Donald Trump on June 18 announced plans for 10 percent duties on $200 billion worth of goods from China (see 1806180058) if China moves forward on planned retaliations to the initial Section 301 tariffs (see 1806150028). "While there is still time for the two countries to reach a negotiated settlement and avoid a trade war (the first tranche of duties does not go into effect until July 6th), that does not appear likely, at this point," Murphy said.

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Among those options is joining a coalition of companies' effort to convince the administration to categorically exempt from the tariffs companies that import from wholly foreign-owned enterprises, Murphy said. "We continue to be in discussions with different parts of the Administration and with members of Congress on a possible exemption for such imports," he said. Murphy has previously voiced some optimism for that tactic (see 1805210040). Companies that have joined in that approach include Dynapar, Fluke, Gilbarco, Halliburton Energy Services and Industrial Scientific, according to a filing last month on the Section 301 tariffs.