The Office of the U.S. Trade Representative will make its final determination on the Biden administration’s proposed tariff increases on China-made goods later this month, according to a July 30 press release.
In May, the Biden administration and USTR unveiled plans to raise Section 301 tariff rates on select goods from China, including electric vehicles, solar cells and semiconductors. Many of the tariff hikes were expected to begin this year, including the rate increase to 100% on electric vehicles. Other tariff rate jumps, including those for semiconductors and natural graphite, would take place over the next two years.
The White House’s rationale for increasing tariffs was to improve the U.S.’ competitive standing in the clean energy and technology sector, a major focus during the Biden administration.
Shortly after, the USTR initiated a comment period on the proposed modifications as well as any potential exemptions. The USTR has received more than 1,100 comments since then, which it says it will continue to review before issuing a final determination. Once a determination is announced, the USTR said tariff increases scheduled for 2024 will go into effect roughly two weeks later.
During the comment period, several manufacturing and retail groups expressed concern about the tariff hikes and the potential impact on operations and prices.
“The tariff increases will lead to further price increases for U.S. companies and potential retaliation by China against U.S. exports,” the National Retail Federation wrote.
Meanwhile, the National Association of Manufacturers said the tariff increases were “not sufficient” to offset unfair trade practices outside the U.S. The organization further bristled at the immediacy of the action.
Beyond the impact on domestic manufacturing, the tariff increases could also “negatively impact operations at U.S. ports,” according to a comment submitted by Sens. Tim Kaine, Mark Warner, Raphael Warnock and Jon Ossoff. The South Carolina Ports Authority, Virginia Port Authority and Georgia Ports Authority all submitted similar concerns, particularly citing the proposed 25% tariff increase on ship-to-shore cranes.
Although many commenters pushed back on the rate hikes, some organizations expressed support, including the Alliance for American Manufacturing. However, despite overall approval of the tariff hikes, the AAM urged the USTR to seriously examine the potential long-term impact of any exclusions, such as those proposed for some solar manufacturing equipment.
Meanwhile, some parties supported even more aggressive actions. For example, U.S. Steel called for the administration to “further increase” tariffs on steel products from China
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