Page is loading...
Print Logo Logo
Section 301 China Tariffs Extended: Just When You Thought It Was Safe to Go Back in the Water


Section 301 China Tariffs Extended: Just When You Thought It Was Safe to Go Back in the Water


The Office of the U.S. Trade Representative (USTR) announced a comment period on proposed Section 301 tariff modifications for products from China subject to increased rates of duty and a new exclusion process

Interested parties may submit written comments by June 28, 2024

The USTR issued determinations to extend and end certain Section 301 product exclusions after June 14, 2024


Since 2018, many U.S. companies have been affected by the substantial import tariffs imposed on certain products from China, also known as Section 301 tariffs. On May 14, 2024, President Joe Biden directed the Office of the U.S. Trade Representative (USTR) to maintain the tariffs at current levels and to add or increase Section 301 tariffs for certain goods from China in strategic sectors. This direction was the result of the USTR’s four-year review of the Section 301 China tariffs.

The USTR also announced it will temporarily extend all expiring Section 301 product exclusions through June 14, 2024. However, after June 14, more than 100 exclusions will expire, and the remaining exclusions will be extended through May 31, 2025.

Section 301 Increased Tariff Modifications and Machinery Exclusion Process

At the president’s direction, the USTR is proposing the following increased tariff modifications on certain products in strategic sectors to take effect in 2024, 2025 and 2026:

Product Current Section 301 Rate Proposed Increased Rate Proposed Effective Date
Battery parts (non-lithium-ion batteries) 7.5% 25% August 1, 2024
Lithium-ion electrical vehicle batteries 7.5% 25% August 1, 2024
Other critical minerals 0% 25% August 1, 2024
Electric vehicles 25% 100% August 1, 2024
Ship to shore cranes 0% 50% August 1, 2024
Solar cells (whether or not assembled into modules) 25% 50% August 1, 2024
Steel and aluminum products 0% to 7.5% 25% August 1, 2024
Syringes and needles 0% 50%

August 1, 2024

Facemasks 7.5% 25% August 1, 2024
Semiconductors 25% 50% January 1, 2025
Lithium-ion non-electrical vehicle batteries 7.5% 25% January 1, 2026
Natural graphite 0% 25% January 1, 2026
Permanent magnets 0% 25% January 1, 2026
 Medical gloves 7.5% 25% January 1, 2026

Additionally, the USTR is proposing a process for considering certain machinery used in domestic manufacturing and certain solar manufacturing equipment be excluded from the tariffs.

The USTR has asked for written comments on the proposed increased tariff modifications and exclusion process by June 28, 2024.

U.S. importers and purchasers of the Chinese products slated for increased tariffs and tariff exclusions, as well as domestic producers and other interested parties, may want to consider submitting comments before the June 28 deadline. Moreover, U.S. importers and purchasers may want to consider the impact of the proposed tariff increases on their costs and supply chain arrangements.

Extension and Expiration of Current Section 301 Product Exclusions

In March 2022, the USTR reinstated 352 previously expired product exclusions and, in May 2023, extended 77 COVID-19-related exclusions. The USTR requested comments on whether to extend these 429 exclusions past May 31, 2024.

On May 24, 2024, the USTR determined that more than 100 exclusions will expire and the remaining exclusions will be extended through May 31, 2025. The product exclusions that will expire include, for example, items such as certain pressure reducing valves and bicycles. To allow for a transition period, the USTR is extending all of the currently expiring exclusions through June 14, 2024.

Interested parties are encouraged to review the extended and expiring exclusions before the temporary extension ends on June 14, 2024.

To obtain more information, please contact the Barnes & Thornburg attorney with whom you work or Luis Arandia at 202-408-6909 or luis.arandia@btlaw.com, David Spooner at 202-371-6377 or david.spooner@btlaw.com or Linda Weinberg at 202-408-6902 or linda.weinberg@btlaw.com.

© 2024 Barnes & Thornburg LLP. All Rights Reserved. This page, and all information on it, is proprietary and the property of Barnes & Thornburg LLP. It may not be reproduced, in any form, without the express written consent of Barnes & Thornburg LLP.

This Barnes & Thornburg LLP publication should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own lawyer on any specific legal questions you may have concerning your situation. 



Do you want to receive more valuable insights directly in your inbox? Visit our subscription center and let us know what you're interested in learning more about.

View Subscription Center
Trending Connect
We use cookies on this site to enhance your user experience. By clicking any link on this page you are giving your consent for us to use cookies.