US USTR backtracks final decision on Section 301 additional tariffs against China until the end of August

The United States Trade Representative Office (USTR) announced on 7/30 that the final decision on reviewing additional tariffs against China (section 301 tariffs) based on section 301 of the 1974 Trade Law will be carried out in August. At the same time, it was announced that the application of additional tariffs based on the final decision is expected to begin about 2 weeks after the final decision is announced. USTR raised the tariff rate of Section 301 tariffs on 387 items such as electric vehicles (EVs) to a maximum of 100%, and proposed starting application etc. from 8/1 as soon as possible, but it was decided that the start of application would be delayed until at least mid-August.

Section 301 tariffs are additional tariffs imposed on imports from China into the United States. As of July, additional tariffs of 7.5 to 25% have been imposed on a wide range of items of 0.01 million or more with 8 to 10 digits of the US tariff classification number (HTS code). In 2024/5, USTR received instructions from President Joe Biden and announced a review plan, such as raising the tariff rate of 387 section 301 tariffs to 25-100%. Of these, it was proposed to start applying 365 items from 2024/8/1, 16 items from 2025/1/1, and 6 items from 2026/1/1.

USTR was soliciting public comments from 5/29 to 6/28 for the final decision on the review. Although USTR did not specify the reason for putting back the final decision, it is stated that it “has received over 1,100 comments” and “will continue to confirm all comments,” which suggests that it takes time to scrutinize public comments.

Items that were expected to be applied from 8/1 include steel/aluminum, EVs, lithium-ion batteries for EVs, important minerals, solar cells, ship-to-land (STS) cranes, medical products, etc.

In addition, in the review plan, USTR accepts applications for exemption from additional tariffs (the exemption period is until 2025/5/31) for 312 items of machinery used for manufacturing within the United States, but details of the exemption application procedure have not been clarified at this time.