On May 14, 2024, following its mandatory review of the Section 301 tariffs on imports from China, the Office of the US Trade Representative published its report which includes recommendations to maintain the current tariffs and allow for new and increased for many commodities. An exclusion process for machinery intended for use in US manufacturing and temporary exclusions for certain solar manufacturing equipment are discussed. There is no mention of extending the remaining tariff exclusions beyond the current expiration date of May 31, 2024.
While no Harmonized Tariff Code list has been published at this stage, the products impacted by the increases are in the following categories:
battery parts (non-lithium-ion batteries) – from 7.5 % to 25 % in 2024
electric vehicles – from 25 % to 100 % in 2024
lithium-ion electrical vehicle batteries – from 7.5 % to 25 % in 2024
lithium-ion non-electrical vehicle batteries – from 7.5 % to 25 % in 2026
medical gloves – from 7.5 % to 25 % in 2026
natural graphite – from 0 to 25 % in 2026
other critical minerals – from 0 to 25 % in 2024
permanent magnets – from 0 to 25 % in 2026
personal protective equipment – from 0-7.5 % to 25 % in 2024
semiconductors – from 25 % to 50 % by 2025
ship-to-shore cranes – from 0 to 25 % in 2024
solar cells (whether or not assembled into modules) – from 25 % to 50 % in 2024
steel and aluminum products – from 0-7.5 % to 25 % in 2024
syringes and needles – from 0 to 50 % in 2024
A formal notice is expected to be published in the Federal Register next week which will outline the implementation schedule and additional details for these changes. We will provide further updates as soon as they are available.
USTR's Press release is found at U.S. Trade Representative Katherine Tai to Take Further Action on China Tariffs After Releasing Statutory Four-Year Review | United States Trade Representative (ustr.gov)
The full text of the report can be found at USTR Report Four Year Review of China Tech Transfer Section 301.pdf.
The White House fact sheet can be found at FACT SHEET: President Biden Takes Action to Protect American Workers and Businesses from China’s Unfair Trade Practices | The White House