Article by: Rick Walker, Vice President, LCB/CCS

The Office of the U.S. Trade Representative (USTR) has delayed the Aug. 1 start for the Section 301 China tariff modifications. On May 28, USTR proposed certain modifications of the actions in the Section 301 investigation of China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation. According to USTR, the agency is still reviewing the more than 1,100 comments received during the open comment period. USTR has indicated that it will make a final announcement in August and provide approximately two weeks before the tariffs will take effect.

In May USTR proposed to increase tariffs on $18 billion worth of Chinese goods, with implementation dates ranging from Aug. 1, 2024, to Jan. 1, 2026. Tariff increases proposed to take effect this year included the following:

• battery parts (non-lithium-ion batteries) – from 7.5 percent to 25 percent
• lithium-ion electrical vehicle batteries – from 7.5 percent to 25 percent
• electric vehicles – from 25 percent to 100 percent
• other critical minerals – from 0 to 25 percent
• face masks / respirators – from 0-7.5 percent to 25 percent
• ship-to-shore cranes – from 0 to 25 percent
• solar cells (whether or not assembled into modules) – from 25 percent to 50 percent
• steel and aluminum products – from 0-7.5 percent to 25 percent
• syringes and needles – from 0 to 50 percent

Please contact your V. Alexander account team, or you may also contact our Trade Compliance team at tradeinsights@valexander.com with any questions.