Biden Administration Delays Section 301 Tariffs
On July 30, the Office of the U.S. Trade Representative announced that it would delay implementation of its updated Section 301 tariffs on products from China by at least two weeks. The revised penalties had been set to take effect on Aug. 1, 2024. The office said it is still reviewing more than 1,100 public comments received regarding the proposed changes and needs more time to make a final determination in the matter.
As Connecting the Dots explained in April, these tariffs are set to affect approximately $18 billion in Chinese imports, including steel, aluminum, electric vehicles (EVs), batteries, semiconductors, and medical products. They fall under Section 301 of the Trade Act of 1974, and are separate from the Section 232 tariffs also in place on imports of steel and aluminum into the United States from some countries, including China.
Specifically, the White House proposed to raise rates on:
- Certain steel and aluminum products from 7.5 percent to 25 percent in 2024, which, again, are in addition to existing Section 232 tariffs;
- Semiconductors from 25 percent to 50 percent by 2025;
- EVs from 25 percent to 100 percent in 2024;
- Solar cells from 25 percent to 50 percent in 2024;
- Lithium batteries for EVs and critical minerals from 7.5 percent to 25 percent in 2024; and
- Ship-to-shore cranes from zero percent to 25 percent in 2024.
Read more about the USTR’s decision to delay implementation at this link.