May 16, 2024
(press release)
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The Office of the United States Trade Representative announced on May 14 the results of its four-year review of tariff actions taken against China under Section 301 in a 193- page report found here. The announcement does not provide any clarity on whether the Office of the US Trade Representative will further extend existing Section 301 China product exclusions that are set to expire on May 31. Key recommendations made by the report are: 1. Section 301 tariffs should remain in place. 2. Tariffs should be added and/or increased to the following products, under a strategic timetable to encourage further elimination of China’s practices and policies related to technology transfer, intellectual property, and innovation. This includes: 2024 2025 2026 3. An exclusion process should be established for machinery used in domestic manufacturing. 4. Please note that Appendix K of the report includes a list of eligible HTS codes; Appendix L includes 19 suggested exclusions for solar manufacturing equipment. 5. Customs and Border Protection should be allocated additional funding for greater enforcement of Section 301 actions. 6. Greater collaboration and cooperation between industry and government is needed to combat state-sponsored technology theft. 7. Continued assessment is needed for how to best approach supply chain diversification. The Office of the US Trade Representative will publish next week in the federal register procedures to comment on the proposed modifications, as well as information on the forthcoming exclusion process for machinery used for domestic manufacturing. The White House has also published a fact sheet regarding this issue, which can be found here.
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