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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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Trump Could Use IEEPA, Section 301 to Enact Tariffs on Mexico, Canada and China, Trade Lawyers Say
November 26, 2024 by Jacob Kopnick|Top News

President-elect Donald Trump will most likely either turn to the International Emergency Economic Powers Act (IEEPA) or Section 301 of the Trade Act of 1974 to impose his recently announced tariffs on Canada, Mexico and China, said trade lawyers interviewed by Trade Law Daily. Though much remains unknown about how Trump will impose these tariffs, the president-elect may turn to the two broad statutes to impose the tariffs to accomplish his stated goals of curbing the flow of migrants and fentanyl into the U.S.

Topics:Section 301 tariff exclusions, Customs duty
Wyden de Minimis Bill Formally Introduced
November 18, 2024 |Congress

Outgoing Senate Finance Committee Chairman Ron Wyden, D-Ore., last week formally introduced a bill restricting de minimis eligibility for textiles and apparel from anywhere in the world, as well as goods subject to Section 301 tariffs (see 2408020031). The bipartisan bill goes beyond the version that passed the House Ways and Means Committee, in that it adds apparel to the list of restricted items, and it would levy a $2 fee on de minimis packages, to help CBP fund its inspections of the low-value packages. The Biden administration is planning to issue a proposed rule before Jan. 20 that would remove Section 301 goods from de minimis, but it can't add the fee through rulemaking.