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On May 22, 2024, the United States Trade Representative (USTR) revealed the proposed increases in Section 301 tariffs on imports from China. If adopted, these new tariffs will impact several sectors, including solar power products, electric vehicles, batteries, critical minerals, semiconductors, gantry cranes, steel and aluminum products, and certain medical supplies. Edward J. Zarach & Associates can help you prepare for and manage these changes.

Overview of the Proposed Tariffs

The USTR first announced the new tariffs on May 14, 2024, but the detailed list of affected products and implementation dates was provided in the Federal Register Notice on May 22, 2024. These tariffs will cover 382 HTS-8 codes and 5 HTS-10 codes, and the implementation will begin on August 1, 2024, with additional tariffs taking effect in 2025 and 2026.

Key Implementation Dates and Products

1. August 1, 2024:

  • Battery parts (non-lithium-ion): 25%
  • Electric vehicles: 100%
  • Lithium-ion EV batteries: 25%
  • Respirators and face masks: 25%
  • Syringes and needles: 50%
  • Gantry cranes: 25%
  • Solar cells: 50%
  • Steel and aluminum products: 25%
  • Critical minerals: 25%

2. January 1, 2025:

  • Semiconductors: 50%

3. January 1, 2026:

  • Lithium-ion non-EV batteries: 25%
  • Medical gloves: 25%
  • Permanent magnets: 25%
  • Natural graphite: 25%

New Exclusion Processes

The USTR plans to introduce a new exclusion process for machinery used in domestic manufacturing, listed under specific HTS subheadings in Chapters 84 and 85. These exclusions will be valid until May 31, 2025. Additionally, 19 automatic tariff exclusions for solar manufacturing equipment are effective from the notice date through May 31, 2025.

Current Exclusions Status

The status of existing tariff exclusions, which were set to expire on May 31, 2024, has been extended through June 14th, with some given an extension through May 31, 2025. These include 352 general exclusions and 77 COVID-related exclusions. The USTR may extend these exclusions with short notice, as has been the practice in the past.

Public Comments and Participation

The proposed tariffs are not final. The USTR is accepting public comments until June 28, 2024. Stakeholders can participate via the USTR Comments Portal starting May 29, 2024. The feedback will help shape the final action and may inform legal challenges if the tariffs are adopted.

Edward J. Zarach & Associates: Your Strategic Partner

Understanding these changes can be complex. At Edward J. Zarach & Associates, we provide strategic guidance and support to ensure compliance and optimize your logistics operations amid these evolving tariffs. You can stay ahead in the evolving trade landscape with Zarach. Contact us today to ensure your logistics operations remain compliant and efficient.