BREAKING NEWS: U.S. Trade Representative Releases Four-Year Review of China Tariffs

The United States Trade Representatives (“USTR”) today released its long awaited four-year review of the tariff rates imposed by former President Donald Trump.

As was widely expected, the USTR recommended that “products from the PRC currently subject to Section 301 tariffs should remain.” The USTR also proposed increasing tariffs on a targeted range of products mostly focused on industries deemed to be of critical long-term economic importance (including the so-called “new three” of solar, lithium-ion batteries and electric vehicles):

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

Though all US importers of any of the listed category of items listed above will be impacted by the proposed tariff increases, the most impacted will be those who import the items scheduled for a tariff increase in 2024.

The USTR Report recommends establishing an exclusion process that will allow companies that have paid these tariffs to later seek refunds of some or all of what they paid. In the next week, a Federal Register Notice will be published that will provide information on the proposed exclusion process and also provide the public an opportunity to comment on the proposed tariff increases.

I will provide further details on the exclusion and comment process as soon as the Federal Register Notice is published.

Read More

Uncategorized