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Section 301 tariffs

Section 301 Tariffs are levied under the Trade Act of 1974 which grants the Office of the United States Trade Representative (USTR) authority to investigate and take action to protect U.S. rights from trade agreements and respond to foreign trade practices. Section 301 of the Trade Act of 1974 provides statutory means allowing the United States to impose sanctions on foreign countries violating U.S. trade agreements or engaging in acts that are “unjustifiable” or “unreasonable” and burdensome to U.S. commerce. Prior to 1995, the U.S. frequently used Section 301 to eliminate trade barriers and pressure other countries to open markets to U.S. goods.

The founding of the World Trade Organization in 1995 created an enforceable dispute settlement mechanism, reducing U.S. use of Section 301. The Trump administration began using Section 301 in 2018 to unilaterally enforce tariffs on countries and industries it deemed unfair to U.S. industries. The Trump administration adopted the policy shift to close what it deemed a persistent "trade gap" between the U.S. and foreign governments that it said disadvantaged U.S. firms. Additionally, it pointed to alleged weaknesses in the WTO trade dispute settlement process to justify many of its tariff actions -- particularly against China. The administration also cited failures in previous trade agreements to enhance foreign market access for U.S. firms and workers.

The Trump Administration launched a Section 301 investigation into Chinese trade policies in August 2017. Following the investigation, President Trump ordered the USTR to take five tariff actions between 2018 and 2019. Subsequent rounds of Section 301 actions against China have continued since. The Office of the U.S. Trade Representative administers Section 301 tariffs, and has also created an exclusion process for importers to seek exemptions from the tariffs.

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CBP Issues Harmonized System Update
June 5, 2024 by Noah Garfinkel|Customs

CBP created Harmonized System Update (HSU) 2404 on June 4, containing 44 Automated Broker Interface (ABI) records and 13 Harmonized Tariff Schedule records. The update includes a partner government agency Harmonized Tariff Schedule flag indicator update, extensions to Section 301 exclusions (see 2405240068), and an update noting the continued suspension of the 25% Section 232 tariffs under subheadings 9903.81.82, 9903.81.83, 9903.81.84 on steel and derivative steel products imported from Ukraine.

Witness: $1 Million Port Fee Could Cost Almost $1,400 Per Container
May 29, 2024 by Mara Lee|Top News

World Shipping Council CEO Joe Kramek said that his trade group doesn't take a position on whether Chinese practices to support its commercial shipbuilding industry are actionable under Section 301, but it "strongly opposes" the petitioners' proposal that a $1 million fee be levied on Chinese-built ships docking in U.S. ports.

CBP Rules Mexico Country of Origin for Food Waste Disposers; Section 301 Duties Don't Apply
May 28, 2024 by Noah Garfinkel|Top News

The country of origin of a Whirlpool food waste disposer is Mexico and Section 301 duties don't apply, CBP said in a customs ruling dated May 15. The agency found that, despite the motor in the garbage disposal being of Chinese origin, the manufacturing process in Mexico substantially transformed the original components into subassemblies, which were then combined to make the final food disposer.