US Business Groups Call for Extension of Public Comment Period on Proposed Tariffs
Trade groups in the US advocating for free trade are urging the Biden administration to extend the public comment period by 30 days and to hold a hearing on the proposed tariffs.
Led by “American for Free Trade,” 173 trade associations have written to the US Trade Representative’s Office (USTR) requesting an extension of the public feedback deadline until July 28th.
These associations represent manufacturers, retailers, tech companies, agricultural conglomerates, energy firms, and transportation companies.
Moreover, they are requesting that USTR hold a public hearing on the proposed tariffs, similar to the tariff increase processes in 2017 and 2018.
The basis for the Biden administration’s imposition of tariffs on China is the statutory review of the Section 301 investigation, which stems from a four-year assessment of China’s behavior, policies, and practices regarding technology transfer, intellectual property, and innovation. USTR has proposed raising tariffs on Chinese imports of electric vehicles, batteries, solar products, and other goods, with many of the tariff plans set to take effect from August 1st.
President Biden announced in May an increase in tariffs on China to protect US manufacturers in strategic sectors from the impacts of China’s overcapacity in industries. The Chinese government is encouraging substantial exports of “new three products” to the global market, including electric vehicles, batteries, and solar products.
Subsequently, USTR announced a more than fourfold increase in tariffs on Chinese electric vehicles and a twofold increase on semiconductor tariffs. At the same time, USTR opened a 30-day public comment period.
In a letter submitted to the USTR comments portal on June 6th, these pro-trade groups stated that they are actively surveying their members to gather feedback on the proposed tariff adjustments expected to have an impact.
“However, our members have indicated that given the scope and submission format for the 387 product categories subject to higher tariffs, they need more time to collect and assess such information,” the letter stated.
If the latest request for the trade agreement is approved, it would mean a delay in the effective date of the tariffs.
Meanwhile, another policy group led by the United Steelworkers union and domestic manufacturing companies is calling for stricter trade barriers on imported products from China.
The Alliance for American Manufacturing stated that the US should reinstate an expired legal tool to prevent the surge in imports the US experienced when China joined the World Trade Organization in 2001.
The signatories of this letter include the Semiconductor Industry Association, Information Technology Industry Council, American Chemistry Council, Brewers Association, National Retail Federation, Halloween and Costume Association, and American Trucking Associations.
Signatories also include the Automotive and Truck Parts Association but notably exclude trade groups representing automotive and electric vehicle manufacturers.
Many of these groups import and sell goods from China, stating in the letter that they employ tens of millions of Americans through their “vast supply chains.”