The United States Trade Representative (USTR) has completed the 4 year review and determined that Section 301 tariffs should remain in effect and included further actions to be taken against China’s unfair technology transfer-related practices.
The President also issued a Memorandum which includes increases to Section 301 tariffs across strategic sectors such as steel and aluminum, semiconductors, electric vehicles, batteries, critical minerals, solar cells, ship-to-shore cranes, and medical products.
The following increases will take place effective September 27, 2024 at, 12:01 a.m. EDT, with the applicable new Harmonized Tariff Schedule (HTS) number to be used:
- 100% for electric vehicles, and syringes and needles, using HTS 9903.91.03
- 50% for solar cells (whether or not assembled into modules), using HTS 9903.91.02
- 20% for battery parts (non-lithium ion batteries), facemasks, lithium-ion electrical vehicle batteries, other critical minerals, ship to shore cranes, and steel and aluminum products, using HTS 9903.91.01
The USTR published a Federal Register Notice (FRN) with Section 301 rate increases and their applicable HTS, for those effective September 27, 2024, as well as those effective on January 1 of 2025 and January 1 of 2026 (see Annex A of FRN).
The USTR has established a process for domestic manufacturers to request for machinery in Chapter 84 and 85 of the Harmonized Tariff Schedule (HTS) to be temporarily excluded from section 301 tariffs.
The USTR will temporarily exclude additional duties on certain solar manufacturing equipment under 14 product specific exclusions (see Annex B to FRN).
There is an exclusion for certain ship-to-shore cranes that are fulfilling an executed contract for sale dated prior to May 14, 2024, when entered for consumption prior to May 14, 2026, but requires an Importer Certification statement (see Annex D to FRN).
General questions may be directed to your Livingston account manager.