On May 14th, President Biden directed the US Trade Representative, Katherine Tai, to increase tariffs under Section 301 of the Trade Act of 1974 on $18 billion of imports from China.
In response to this direction, the USTR has proposed the following increases:
Battery parts (non-lithium-ion batteries) Increase rate to 25% in 2024
Electric vehicles Increase rate to 100% in 2024
Facemasks Increase rate to 25% in 2024
Lithium-ion electrical vehicle batteries Increase rate to 25% in 2024
Lithium-ion non-electrical vehicle batteries Increase rate to 25% in 2026
Medical gloves Increase rate to 25% in 2026
Natural graphite Increase rate to 25% in 2026
Other critical minerals Increase rate to 25% in 2024
Permanent magnets Increase rate to 25% in 2026
Semiconductors Increase rate to 50% in 2025
Ship to shore cranes Increase rate to 25% in 2024
Solar cells (whether or not assembled into modules) Increase rate to 50% in 2024
Steel and aluminum products Increase rate to 25% in 2024
Syringes and needles Increase rate to 50% in 2024
Included in the proposal is the recommendation for establishing an exclusion process for machinery used in domestic manufacturing and the allocation of additional funding for US Customs and Border Protection for greater enforcement of Section 301 actions.
Next week the USTR will issue a Federal Register notice seeking comments to the proposed modifications.
Further information can be found on the fact sheet provided by the White House and the press release issued by the USTR.
If you have any questions or concerns, please contact the Willson International U.S. Regulatory Team at transitionteamus@willsonintl.com.