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Section 301 tariffs

Section 301 Tariffs are levied under the Trade Act of 1974 which grants the Office of the United States Trade Representative (USTR) authority to investigate and take action to protect U.S. rights from trade agreements and respond to foreign trade practices. Section 301 of the Trade Act of 1974 provides statutory means allowing the United States to impose sanctions on foreign countries violating U.S. trade agreements or engaging in acts that are “unjustifiable” or “unreasonable” and burdensome to U.S. commerce. Prior to 1995, the U.S. frequently used Section 301 to eliminate trade barriers and pressure other countries to open markets to U.S. goods.

The founding of the World Trade Organization in 1995 created an enforceable dispute settlement mechanism, reducing U.S. use of Section 301. The Trump administration began using Section 301 in 2018 to unilaterally enforce tariffs on countries and industries it deemed unfair to U.S. industries. The Trump administration adopted the policy shift to close what it deemed a persistent "trade gap" between the U.S. and foreign governments that it said disadvantaged U.S. firms. Additionally, it pointed to alleged weaknesses in the WTO trade dispute settlement process to justify many of its tariff actions -- particularly against China. The administration also cited failures in previous trade agreements to enhance foreign market access for U.S. firms and workers.

The Trump Administration launched a Section 301 investigation into Chinese trade policies in August 2017. Following the investigation, President Trump ordered the USTR to take five tariff actions between 2018 and 2019. Subsequent rounds of Section 301 actions against China have continued since. The Office of the U.S. Trade Representative administers Section 301 tariffs, and has also created an exclusion process for importers to seek exemptions from the tariffs.

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Companies Say Section 301 Tariffs Have Cost Millions, Slowed Hiring, Not Stopped China
January 18, 2023 by Mara Lee|Top News

Hundreds of companies, as well as trade groups from agriculture, retailers and manufacturing, have told the Office of the U.S. Trade Representative that the Section 301 tariffs on $350 million in Chinese goods have not achieved their aim, have hurt U.S. businesses and, often, have not even moved production to other countries in Asia or to Mexico.

Topics:Section 301 tariff exclusions, Customs duty, Forced Labor
USMCA Expert Says Auto Decision Will Not Change Sourcing Patterns
January 12, 2023 by Mara Lee|Top News

A trade lawyer who has clients in the auto industry says that Mexico's and Canada's auto rules of origin arbitration win does not necessarily change sourcing and investment decisions, because automakers were already proceeding as if 100% of originating parts' value would be counted when calculating the regional value content of vehicles.

Topics:U.S. Trade Representative (USTR), Entry Type 86 , Manifest Confidentiality, USMCA, Forced Labor
CBP Issues Harmonized System Update
January 3, 2023 |Customs

CBP created Harmonized System Update (HSU) 2230 on Dec. 29, containing 11,465 ABI records and 1,654 Harmonized Tariff Schedule records. The changes involve 484(f) changes, annual stage rate changes, Craft Beverage Modernization Act (CBMA) high rate updates, 2023 tariff schedule updates, extended Section 301 product exclusions and PGA HTS flagging, it said in a CSMS message.