China Tariff Increases Postponed

The Office of the U.S. Trade Representative has announced a delay in the increase of Section 301 tariffs on various imports from China, which had been proposed to take effect Aug. 1.

In May USTR proposed to increase tariffs on $18 billion worth of Chinese goods, with implementation dates ranging from Aug. 1, 2024, to Jan. 1, 2026. Tariff increases proposed to take effect this year include the following.

– battery parts (non-lithium-ion batteries) – from 7.5 percent to 25 percent

– lithium-ion electrical vehicle batteries – from 7.5 percent to 25 percent

– electric vehicles – from 25 percent to 100 percent

– other critical minerals – from 0 to 25 percent

– face masks / respirators – from 0-7.5 percent to 25 percent

– ship-to-shore cranes – from 0 to 25 percent

– solar cells (whether or not assembled into modules) – from 25 percent to 50 percent

– steel and aluminum products – from 0-7.5 percent to 25 percent

– syringes and needles – from 0 to 50 percent

USTR states that it received more than 1,100 comments on its proposal and is continuing to review them. As a result, a final determination is now expected sometime in August and any tariff increases are expected to take effect about two weeks thereafter.

USTR also recommended in its May proposal (1) an exclusion process limited to machinery used in domestic manufacturing, (2) temporary exclusions for certain solar manufacturing equipment, (3) allocating additional funds to U.S. Customs and Border Protection for greater enforcement of Section 301 tariffs, (4) greater collaboration and cooperation between private companies and government authorities to combat state-sponsored technology theft, and (5) continuing to assess approaches to support diversification of supply chains to enhance supply chain resilience.

Importers of goods subject to the proposed tariff increases should contact ST&R to discuss options for avoiding or ameliorating them (click here for an overview). ST&R can also help importers of machinery that may be eligible for new tariff exclusions to navigate that process. For more information on these or other topics related to the Section 301 tariffs, please contact your ST&R professional or via this email.

Click here for ST&R’s frequently-updated page on the China Section 301 tariffs, exclusions, and related developments.