The Office of the US Trade Representative has announced the final modifications of the Section 301 tariffs for China-origin goods. The modifications are scheduled to be implemented over the next two years and the first round of increases will be effective on September 27, 2024. Tariff increases scheduled for 2025 and 2026 will be applicable on January 1 of the corresponding year. Originally proposed in May, these modifications will increase the additional tariff charges on a wide range of products. The final list of modifications is little changed from the proposed list.
Annex A includes tariff increases for certain batteries, face masks, critical materials, semiconductors, solar cells, and a range of steel and aluminum products. Most of the increases will result in a 25% tariff, but one of the items that has attracted national attention is the 100% tariffs to be assessed on electric vehicles. It should be noted that there is also a 100% tariff to be assessed on most syringes and surgical needles. Semiconductors and solar cells will carry a 50% Section 301 tariff. The final list includes an exemption for ship-to-shore cranes with a sale date prior to May 14, 2024, and an entry date prior to May 14, 2026, and for enteral syringes entered prior to January 1, 2026.
The Federal Register notice on the modifications may be viewed here. This notice provides further information on the application of the tariffs, a timeline, and a list of HTS codes to be affected. New provisional codes are being added to the HTSUS to accommodate the tariff modifications and the added provisional numbers are also listed in the Federal Register Notice.
The modifications are a result of the required sunset review on Section 301 tariffs which must be undertaken every four years. The review indicated that increased tariffs are warranted on some products. The review will also result in a new process allowing for interested parties to apply for an exclusion for machinery used in domestic manufacturing as listed on Annex E.
Best Regards,
Sam McClure, LCB
Director of Compliance & Customs Services