U.S. Trade Representative Calls for More Tariffs on Chinese Goods

Following the statutory four-year review of tariffs on China, U.S. Trade Representative Katherine Tai has recommended further tariffs on certain Chinese products. This review comes in the wake of President Biden claiming he wants to increase Section 301 Tariffs on Chinese steel.

As part of the Section 301 statute, the USTR is required to conduct a review of the tariffs every four years to determine the effectiveness of current tariffs, other possible actions, and the overall effect of the tariffs on the U.S. economy. The Office of the USTR then recommends any modifications based on the results of the statutory review.

Ambassador Tai’s recommendation to maintain the Section 301 tariffs comes as no surprise given the White House’s continued stance on supporting the American economy. The larger development comes from Tai’s recommendation to add or increase tariffs on certain products. There are a number of products on the list that would directly impact Scarbrough Global clients, notably electric vehicles and medical products such as facemasks and needles and syringes. The full list of proposals is as follows:

How does this affect you?

Generally, these increased rates are felt mostly by the consumer. If your business imports any of these products from China, you could feel the burden of the higher prices.

Next week, USTR will issue a Federal Register notice announcing procedures for interested persons to comment on the proposed modifications and information concerning an exclusion process for machinery used in domestic manufacturing. That would be your opportunity to voice your opinions on the suggested tariffs. If you have any further questions, please reach out to your Scarbrough representative for assistance.