Biden Administration to End Tariff Exclusions on Chinese Goods

On Friday, the USTR announced that the US will allow tariff exclusions to lapse for approximately half of the 400 previously spared products.

The tariffs on hundreds of imported Chinese goods were first imposed under President Donald Trump starting in 2018

The office of the US Trade Representative announced President Joe Biden's decision to reintroduce tariffs on numerous goods imported from China, as part of a broader strategy to elevate duties in strategic sectors and safeguard American manufacturing.

According to USTR, tariff exclusions will lapse on approximately half of the 400 products previously spared. On Friday, it disclosed that 164 exclusions would be prolonged until May of the following year. All exemptions, originally set to expire by month's end, will now be extended until June 14 to facilitate a transition period for non-renewed exclusions.

Products such as certain types of motors and medical equipment will continue to benefit from exclusions until next May. However, the list of products granted extensions encompasses a diverse range, including child safety seats, specific backpacks, and certain types of crab meat.

Conversely, over 100 products will no longer enjoy exclusions, with the administration citing a lack of public commentary seeking their extension. Additionally, for remaining products, public feedback failed to demonstrate that extending exclusions would prompt a shift away from Chinese sourcing or prove that alternatives to Chinese imports were unavailable.

This move follows the administration's recent announcement to escalate tariffs on electric vehicles from China and raise duties on imports like semiconductors, batteries, solar cells, and critical minerals, citing alleged intellectual property theft by the nation.

The tariffs were initially implemented under President Donald Trump's administration, commencing in 2018.

Source: Moneycontrol