Potential for Change in Section 301 Tariffs

The Biden Administration is evaluating the potential to lower tariffs on non-strategic goods imported from China, as a measure to help combat inflation and advance strategic political and economic priorities.

On April 21st, 2022, Reuters reported Deputy National Security Adviser Daleep Singh’s comments on the potential of restructuring Section 301 tariffs to target “real strategic priorities”. Singh’s comments signal that tariffs on non-strategic goods, such as apparel, could be lowered since the tariffs’ strategic purpose is dated; to address the retaliatory, non-strategic tariffs China imposed on the U.S. in response to Section 301 tariffs; as a measure to address supply chain flexibility; and as a step to help address inflation. Inflation is a key political and economic issue which has potential to significantly influence how the White House addresses Section 301 tariffs. Statements from Singh, USTR Katherine Tai, December comments from Treasury Secretary Janet Yellen, and the bi-partisan efforts in the House signal there is real opportunity and support to overhaul Section 301.

When discussing the Administration’s “New Approach to the U.S.-China Trade Relationship”, USTR Katherine Tai stated “…the U.S.-China trade and economic relationship is one of profound consequence.  As the two largest economies in the world, how we relate to each other does not just affect our two countries. It impacts the entire world and billions of workers”. This comment from the USTR illustrates the implications Section 301 has on the global economy.

If you would like to learn more about maximizing your logistics and trade business potential while navigating Section 301 or any other trade topic, please call Allyn International at 239.489.9900 or email sales@allynintl.com.

Contributor: Ross Wilson

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Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North America, Europe and Asia and Allyn regional headquarters are strategically located in Fort Myers FL USA, Shanghai P.R. CHINA and Prague, CZECH REPUBLIC. For more information, go to www.allynintl.com.