The Office of the U.S. Trade Representative decided that 164 exclusions from Section 301 China tariffs -- including for fabrics, bras, electric motors, sterile drapes, hunting stands, bicycle trailers, auto rearview mirrors and more -- will continue to avoid the tariffs through May 31, 2025, while 265 exclusions will expire June 14.
The auto industry welcomes the pre-emptive tariff on Chinese electric vehicles -- it is going from 27.5% to 102.5% Aug. 1 -- but says that higher Section 301 tariffs on lithium-ion batteries and the minerals used to make those batteries work are counterproductive to the goal of helping automakers catch up to China's head start.
The U.S.-China Economic and Security Review Commission, shortly after the administration chose to keep and expand the Section 301 tariffs (see 2405220072), grappled with what it should recommend to Congress on how to use trade policy to counteract trade distortions from China's communist-run economy.
Solar manufacturing equipment imported from China will automatically be exempt from 301 tariffs, but a notice published by the Office of U.S. Trade Representative is unclear on when those tariffs will be lifted. A spokesperson said they will be effective on the day the notice is published in the Federal Register.
Five products identified by the Biden administration as deserving 100% Section 301 tariffs for strategic reasons -- electric vans, buses, low-speed golf-cart like EVs, electric cars, and plug-in hybrids -- will see higher rates on Aug. 1.
Former House Ways and Means Committee Chairman Kevin Brady of Texas, who led the committee when the major tax cuts were written and passed during the Trump administration, is joining Akin's lobbying practice. Brian Pomper, former chief international trade counsel when Sen. Max Baucus, D-Mont., led the committee, now is co-lead of the lobbying practice. He said: "With the novel USMCA review process starting in earnest next year and the need to navigate difficult trade issues like the Section 301 tariffs on China, Brady’s distinguished career at the forefront of shaping trade policy will bring unparalleled perspective and insight to our clients at a critical time.”
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A Federal Register notice that will be made public this week will announce decisions on which of the current Section 301 tariff exclusions can continue, according to Brian Janovitz, chief counsel for China trade enforcement in the Office of the U.S. Trade Representative.
Many importers who were hit with Section 301 tariffs six years ago expected they would be rolled back in 18 months or two or three years, said Nicole Bivens Collinson, director of Sandler Travis's international trade and government relations practice. Then, once that didn't happen, they thought they'd see what happened in the Biden administration.
Commerce Secretary Gina Raimondo told Senate appropriators that a proposed rule on connected vehicles should come out in the fall.