The office of U.S. Trade Representative Katherine Tai on Tuesday announced a further extension of China “Section 301” tariff exclusions on 352 Chinese import and 77 COVID-19-related categories till May 31, 2024.
Quick Read
- Extension Announced: The U.S. Trade Representative Katherine Tai’s office announced an extension of China “Section 301” tariff exclusions.
- Categories Extended: The extension applies to 352 Chinese import categories and 77 COVID-19-related categories until May 31, 2024.
- Background of Section 301: The Trump administration used Section 301 of the Trade Act of 1974 to impose tariffs on China in 2018 and 2019 to address unfair trade practices.
- Included Tariff Exclusions: The exclusions cover various items, including industrial components, car parts, bicycles, vacuum cleaners, and COVID-related medical products like face masks and hand sanitizing wipes.
- Reason for Extension: The extension, previously set to expire on December 31, will allow for further consideration under a statutory four-year review.
- Biden’s Trade Stance: President Joe Biden has maintained the additional tariffs on Chinese exports initiated by the Trump administration and added new restrictions related to semiconductors, citing security concerns.
- Context of Tariffs on China: Trump imposed tariffs on Chinese imports valued at around $370 billion, following findings of intellectual property misappropriation and forced technology transfers by China.
- China’s Response: China has described the U.S. 301 tariffs as “discriminatory” and extended its own tariff exemptions for some U.S. imports until July 31, 2024.
- Broader U.S.-China Relations: The tariff issue is part of wider strains in U.S.-China relations, encompassing disputes over Taiwan, spying allegations, human rights, and the origins of the COVID-19 pandemic.
Reuters has the story:
US extends tariff exclusions on some Chinese categories till May 31
Newslooks- WASHINGTON, Dec 26 (Reuters) –
The office of U.S. Trade Representative Katherine Tai on Tuesday announced a further extension of China “Section 301” tariff exclusions on 352 Chinese import and 77 COVID-19-related categories till May 31, 2024.
THE TAKE
The administration of former President Donald Trump used Section 301 of the Trade Act of 1974, a statute aimed at combating trade partners’ unfair practices, to launch the China tariffs in 2018 and 2019.
The import tariff exclusions include industrial components such as pumps and electric motors, some car parts and chemicals, bicycles and vacuum cleaners. The COVID-related exclusions include medical products like face masks, examination gloves and hand sanitizing wipes.
WHAT’S NEXT
The exclusions were previously scheduled to expire on Dec. 31. The extension till May 31 will allow for further consideration under a statutory four-year review, Tai’s office said in a statement.
CONTEXT
U.S. President Joe Biden has retained additional tariffs placed on a plethora of Chinese exports under the previous Trump administration and added new restrictions prohibiting the export of advanced semiconductors and the equipment to make them, citing security concerns.
Trump imposed tariffs in 2018 and 2019 on thousands of imports from China valued at some $370 billion at the time, after a “Section 301” investigation found that China was misappropriating U.S. intellectual property and coercing U.S. companies to transfer sensitive technology to do business.
China has called U.S. 301 tariffs on Chinese imports “discriminatory.”
Tariffs are only one component of strains in U.S.-China relations of late. Other contentious issues include Taiwan, spying allegations, human rights and the origins of the COVID-19 pandemic.
Last week, China also extended tariff exemptions for some imported products from the United States until July 31, 2024, according to the Chinese finance ministry.
