Following an exhaustive evaluation, the Biden administration has decided to implement additional Section 301 tariffs. Ambassador Katherine Tai explained, “After a thorough review of the statutory report on Section 301 tariffs, and in light of my recommendations, President Biden has directed me to take further steps to counteract the People’s Republic of China’s unfair technology transfer-related policies and practices. These measures continue to impede U.S. commerce and adversely affect American workers and businesses.” 

The recommendation is that the products from the PRC currently under Section 301 tariffs will continue to be subject to these tariffs, with an increase on the following Chinese origin items:

The administration has also made recommendations for a new process for petitioning for exclusion from these tariffs, though it appears exclusions will be restricted to certain items in Chapter 84 and 85 used in domestic manufacturing.  

The administration has also proposed allocating additional funds to Customs and Border Protection to enhance enforcement of Section 301 actions and fostering greater collaboration between private companies and government authorities to tackle state-sponsored technology theft.

Be on the lookout for a Federal Register notice in the next few days for more details. There will also be an opportunity to comment to the USTR before these recommendations take effect.

Shapiro will continue to monitor the situation and provide status updates as they become available.