World Shipping Council CEO Joe Kramek said that his trade group doesn't take a position on whether Chinese practices to support its commercial shipbuilding industry are actionable under Section 301, but it "strongly opposes" the petitioners' proposal that a $1 million fee be levied on Chinese-built ships docking in U.S. ports.
Government subsidies for domestic manufacturing in strategic sectors tend to then need trade protections, former top U.S. trade representative officials from the Trump and Biden administrations agreed.
A Kelley Drye attorney, who used to be part of the Forced Labor Enforcement Task Force due to his role at the U.S. Trade Representative's Office of Labor Affairs, said the recent 26 additions to the FLETF's Uyghur Forced Labor Prevention Act entity list are significant because they are not companies directly employing Uyghurs harvesting cotton or in fabric mills or cut and sew operations.
The Office of the U.S. Trade Representative decided that 164 exclusions from Section 301 China tariffs -- including for fabrics, bras, electric motors, sterile drapes, hunting stands, bicycle trailers, auto rearview mirrors and more -- will continue to avoid the tariffs through May 31, 2025, while 265 exclusions will expire June 14.
The Office of the U.S. Trade Representative decided to extend 164 Section 301 tariff exclusions through May 31, and the other 265 exclusions will expire June 14.
The auto industry welcomes the pre-emptive tariff on Chinese electric vehicles -- it is going from 27.5% to 102.5% Aug. 1 -- but says that higher Section 301 tariffs on lithium-ion batteries and the minerals used to make those batteries work are counterproductive to the goal of helping automakers catch up to China's head start.
The U.S.-China Economic and Security Review Commission, shortly after the administration chose to keep and expand the Section 301 tariffs (see 2405220072), grappled with what it should recommend to Congress on how to use trade policy to counteract trade distortions from China's communist-run economy.
Senators and witnesses focused on de minimis and CBP's data collecting authorities -- both sides agreeing that data collection, particularly from partner government agencies, needs to be refined, and that de minimis is a useful trade facilitation tool.
Failures in import compliance were revealed in the Senate Finance Committee's report on two auto companies' imports of parts or cars containing parts made by a company on the Uyghur Forced Labor Prevention Act entity list (see 2405200009). But the report also exposed a weakness in CBP's ability to detect goods that should be detained under UFLPA, finding that Jaguar Land Rover imported spare parts that included LAN transformers made by a Chinese company on the entity list and only one manufacturer removed from the finished product.
Five products identified by the Biden administration as deserving 100% Section 301 tariffs for strategic reasons -- electric vans, buses, low-speed golf-cart like EVs, electric cars, and plug-in hybrids -- will see higher rates on Aug. 1.