USTR Announces Four Year Review Process of China 301 Tariffs

The Office of the U.S. Trade Representative (USTR) issued a notice on May 3 commencing the statutory process required leading up to the four-year anniversaries of the Section 301 tariffs on imports from China, which may also result in the possible termination of the tariff actions.

The first step in the four-year review process is notifying representatives of domestic industries which benefit from the trade actions, as modified, of the possible termination of the actions, and of the opportunity for these representatives to request continuation of the actions, according to USTR.

USTR says it will consider the effectiveness of the action in achieving the objectives of Section 301, other actions that could be taken, and the effects of such actions on the United States economy, including consumers. 

USTR’s position has been that as Congress and the Administration continue to develop trade strategies with China, they should ensure that American consumers and businesses are not penalized. This could include recommendations from USTR to grant requests for auto parts that the industry has difficulty sourcing from other countries, for example, brake rotors. Additionally, members working to re-source and re-develop supply chains have faced manufacturing challenges in other countries related to capacity issues, quality control, absence of material supply, infrastructure and logistics to product and move product.