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2024-06-04
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[DR & AJU Issue Report] U.S. Announces New Tariffs on Chinese Goods



1. Key Takeaways
 

On May 14, 2024, President Joe Biden announced that he had directed the Office of the U.S. Trade Representative (USTR) to increase tariffs on various products originating from China under Section 301 of the Trade Act of 1974.

The announcement is expected to particularly impact electric vehicles (EVs), EV batteries, battery parts, semiconductors, key minerals, steel, and aluminum. The move is anticipated to have a significant effect on the ongoing trade war between the U.S. and China.



Newly Imposed and Increased Tariffs on Chinese-Origin Products

USTR has decided to include all products subject to Section 301 tariffs in this review, based on the determination that China engages in unfair or discriminatory practices related to technology transfer, intellectual property rights, and innovation.

Exclusion Process for Machinery Used in domestic U.S. Manufacturing

 

USTR announced that it will initiate the process to apply for exclusion to the tariff increase for machinery used in domestic U.S. manufacturing, particularly prioritizing exclusions for certain solar manufacturing equipment.

To support investment in U.S. solar manufacturing, USTR has proposed 19 temporary exclusions for certain solar manufacturing equipment. 




2. Implications

As a result of these tariff regime changes, companies should carefully evaluate the impact of the newly introduced and increased tariffs on their operations. They should also consider whether they may benefit from the new exclusion process.


To respond to the rapidly evolving legal market, DR & AJU LLC has been publishing issue reports that analyze the latest news and trends in the legal landscape.
Please click the link below to access the report.

https://www.draju.com/ko/sub/newsletters.html?type=view&bsNo=4167&page=1&bcCat=16