Unless there is a last-minute extension, the remaining exclusions to the Section 301 tariffs are scheduled to expire on May 31. These 164 exclusions were last extended in an announcement by the USTR on May 24, 2024. Under the current trade and tariff environment, it seems unlikely that further extensions will be granted, though there has certainly been a history of late-term extensions.
Should the exemptions expire, importers of goods currently covered by the exemptions will face additional tariff rates based on the original round of tariffs that were applied. Goods under the first three rounds, which make up the majority of the exclusions, will return to a 25% Section 301 tariff, while the 25 exclusions granted goods under the fourth round of 301 tariffs will be assessed 7.5%. The application of the tariffs is based on the import and release dates, and currently, there is no exemption based on the export date. These tariffs will stack on top of the base duty rate and any other additional tariffs currently being assessed.
Best Regards,
Sam McClure, LCB
Director of Compliance & Customs Services