The United States Trade Representative (USTR) has decided to extend the exemption from high tariffs on certain Chinese products and COVID-19 related items, which were imposed during the Donald Trump administration, until the end of the year.
On the 6th (local time), USTR announced in a press release that it would further extend the exemption under Section 301 of the Trade Act for 352 Chinese products and 77 Chinese COVID-19 related items, which were originally scheduled to expire at the end of this month. The Trump administration imposed a 25% high tariff on a wide range of Chinese products using Section 301 of the Trade Act in 2018-2019, citing unfair competition and other reasons. The U.S. government later decided to temporarily exempt tariffs on 549 products until the end of 2020.
The Joe Biden administration reinstated the tariff exemption for 352 of the 549 products in March last year and extended the expiration date from the end of last year to September this year. The 352 products include industrial parts such as pumps, compressors, filters, and valves. Separately, the Biden administration has continued to extend the exemption period for Section 301 tariffs on Chinese COVID-related products such as masks and medical gloves.
Section 301 of the Trade Act grants the U.S. president the authority to take necessary measures in response to unfair trade practices that negatively affect U.S. trade and investment. Section 307 requires a review every four years of the economic impact and effectiveness of measures taken under Section 301. USTR is currently conducting a regular review of the measures implemented during the Trump administration.
Regarding this, Commerce Secretary Gina Raimondo said in an interview with CNBC yesterday, "These tariffs were not initially imposed by us, and in many cases, I don't think they are entirely sensible," adding, "The Trump administration could have imposed tariffs more strategically. That is why we are conducting a four-year review now."
She continued, "USTR is reviewing whether the tariffs are effective," and said, "Until this review is completed, the government does not expect to take any action regarding the high tariffs on China." She also reiterated, "China’s practice of subsidizing its domestic companies harms American workers, and we need to level the playing field."
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