The U.S. Trade Representative’s Office (USTR) announced on Friday that President Biden will terminate tariff exemptions and resume imposing tariffs on hundreds of Chinese imported goods. This move is an extension of the United States’ strategic trade policy to combat unfair trade and protect the domestic manufacturing industry.
According to media reports, a total of 429 items, including 352 Chinese imports and 77 COVID-19 related goods, under the “Section 301” tariffs were set to expire on May 31. The exemptions for 102 items will not be extended, while the exemptions for 164 items will be extended until May 2025, and the remaining items will have their exemptions extended until June 14 this year.
In January 2024, the USTR began soliciting public opinions on whether to further extend specific exemption ranges, with the comment period ending on February 21.
The USTR stated that for the 102 items where exemptions are immediately terminated, no public requests were received to extend the exemptions. Extending the exemption deadline until June 14 for some goods is to allow for a transition period. Public opinions did not indicate that extending the exemption period would help in shifting procurement away from China or show that these imported goods could not be sourced from outside China.
The extension of exemptions for 164 items until May 31, 2025, aims to support efforts to shift procurement out of China or provide more time when supply of products outside China remains limited.
Some products will continue to enjoy tariff exemptions until May next year, including various electrical and medical equipment, as well as a variety of items such as child safety seats, certain types of backpacks, and certain types of crab meat.
Former President Trump’s administration used Section 301 of the 1974 Trade Act in 2018 and 2019 to impose a 25% tariff on 1,333 Chinese imports worth $500 billion to combat unfair practices by trade partners, igniting the U.S.-China trade war.
President Biden has continued Trump’s trade policy towards China and escalated the trade war. On May 14, the Biden administration announced strict new tariff rates on $18 billion worth of Chinese imports. Starting in 2025, tariffs on Chinese imported electric vehicles will increase to 100%, and semiconductor products will see an increase from 25% to 50%.