Breaking News: USTR Extends China Section 301 Tariff Exclusions

Today, September 6, USTR announced it is extending 429 tariff exclusions in the China Section 301 Investigation until December 31, 2023. The exclusions were previously scheduled to expire on September 30, 2023. 

These exclusions include industrial components such as pumps and electric motors, some car parts and chemicals, bicycles, and vacuum cleaners. The COVID-related exclusions include medical products like face masks, examination gloves, and hand sanitizing wipes.

Duties on tariff-included products currently range from 7.5% on many consumer goods to 25% on vehicles, industrial components, semiconductors, and other electronics. Among the major categories that escaped tariffs were cell phones, laptop computers, and video game consoles.

The extension will allow for further consideration under USTR’s statutory four-year review. Back in July, Ambassador Tai indicated that “as part of the four-year review of the Section 301 tariffs, USTR is reviewing the effectiveness of the tariffs in achieving the objectives of the investigation, as well as the effect of the tariffs on consumers, workers, and the U.S. economy at large…As part of this review, we are considering the existing tariffs structure and how to make the tariffs more strategic in light of impacts on sectors of the U.S. economy as well [as] the goal of increasing domestic manufacturing.”

Read the Federal Register Notice here

Read more from Reuters here

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