Section 301 China Tariffs Aren’t Stopping Yet

The fate of Section 301 China tariffs remains in question as the United States Trade Representative (USTR) and Federal Government consider their options. For now, the duties remain in place.

USTR to Review Section 301 Continuation Requests 

The Section 301 tariffs were structured to automatically end four years after activation on July 6. However, a provision allows for parties who have found the duties helpful to request their continuation. If the USTR receives valid requests, the Section 301 tariffs will remain in place.

The USTR began accepting these submissions within the last two months. Many shippers had hoped that the process would proceed without requests and Section 301 duties would expire. This would quickly reduce the costs of shipping from the United States’ biggest trade partner.

But according to reports, dozens of businesses have submitted requests in favor of the tariffs. Industry experts expect that the USTR will accept these requests and keep the tariffs in place. For now, it seems, Section 301 will remain in effect against many China-produced goods unless lawmakers decide to act.

White House Mulls Tariffs Amid Inflation Woes

The Biden administration may take its own actions to blunt the force of Section 301 tariffs. The White House has expressed concern over the nation’s rapid inflation in 2022 – dropping certain duties on Chinese goods may help.

A Reuters report states that President Joe Biden’s staff is reviewing Section 301 tariffs one-by-one. However, the President stated that he has not made a final decision on whether to halt tariffs as part of his inflation plan.

Other efforts have stalled in Congress, too. According to industry sources, lawmakers sought to pass legislation that would require a new Section 301 exclusions assessment process. But those provisions are unlikely to make it into law until later this year.

Fluid Trade Situation Requires Agility, Flexibility from Importers

The China tariff situation is currently in a holding pattern – but circumstances may change quickly. If tariffs are changed or dropped altogether, contact Scarbrough International. Our customs brokers will ensure that your duty payments are both fully compliant and cost-saving.