The Office of the U.S. Trade Representative (USTR) recently announced the extension of 164 Section 301 tariff exclusions through May 31, 2024, while the remaining 265 exclusions expire on June 14, 2024. Initiated under Section 301 of the Trade Act of 1974, these tariffs are trade measures imposed by the United States on imports from China. They were issued in response to a USTR investigation that concluded China engaged in unfair trade practices, such as intellectual property theft, forced technology transfer, and other practices deemed detrimental to U.S. economic interests.
Section 301 exclusions were initially granted during the Trump Administration and were later restored by the Biden Administration. The exclusions were granted by the USTR in response to petitions from U.S. businesses and stakeholders that argued the tariffs created economic harm or the inability to find alternative sources for the products in question. They include a wide product range such as apparel, industrial components, machinery, medical equipment, polymer films, mopeds, binoculars, sewing machines, robots, and safety glasses.
SECTION 301 EXCLUSIONS
Nearly 60% of the exclusions will cease in June. The USTR determined that these exclusions should terminate for reasons such as a lack of plans to shift sourcing out of China, a need to remain in China due to cost, the existence of domestic producers capable of supplying the goods, or objections from other importers now sourcing from different countries. For the exclusions that were extended, the USTR found that exempting these imports from Section 301 tariffs would support efforts to shift sourcing. In some cases, there were credible efforts to source from other countries, but adequate alternatives were not available. A complete list of Section 301 exclusions is available at the USTR website.
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