Section 301 Tariff Exclusions & Extensions
Trade Update • May 29, 2024
n a significant move affecting various industries, the U.S. Trade Representative (USTR) has announced further updates to the Section 301 China tariffs. These modifications have important implications for businesses relying on these exclusions to manage costs and supply chains.
Extension of 164 Exclusions
The U.S. Trade Representative (USTR) has announced the continuation of 164 exclusions from the Section 301 China tariffs. These exclusions cover a wide range of products, including fabrics, bras, electric motors, sterile drapes, hunting stands, bicycle trailers, and auto rear view mirrors. These products will continue to avoid the tariffs until May 31, 2025.
Expiration of 265 Exclusions
In contrast, 265 exclusions are still set to expire on June 14. This expiration will affect various other products previously exempt from the tariffs, marking a significant shift in trade policy and impacting businesses relying on these exclusions.
Rationale for Extension
The USTR explained that extending these 164 exclusions supports efforts to shift sourcing away from China. The extension is intended to provide additional time for businesses attempting to source products from alternative locations, as the availability of certain products outside of China remains limited. This policy aims to facilitate a smoother transition and minimize disruption to supply chains.
In summary, the USTR’s decision reflects a strategic balance between continuing certain tariff exclusions to support business adjustments and allowing others to expire to reinforce trade policy objectives.
Products Covered
The full product listing with descriptions and HTSUS can be found in the Federal Register notice.
Questions or concerns about if your products are affected please contact us.
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