ould undertake a more limited exclusion process designed, for example, to support U.S. manufacturing. As with other Biden administration trade policy decisions, labor and/or environment considerations likely will weigh more heavily in the decision-making than during the Trump administration. While exclusion requests for Lists 1 and 2 may face an uphill battle since they cover products targeted in China’s “Made in China 2025” industrial policy, non-controversial industrial parts and components, raw materials, consumer, health care, agricultural, and fisheries products on Lists 3 and 4a are potential candidates for exclusions, depending on their facts and circumstances and whether there is domestic opposition. Because the administration is likely to want to keep the exclusions within a limited range, e.g. $10 billion, in order to minimize domestic criticism and maintain Tai’s negotiating leverage, there is likely to be intense competition to get on the list of exclusions.References1 See 87 FR 55073 (September 8, 2022).2See 83 FR 28719 (June 20, 2018); 83 FR 40823 (August 16, 2018); 83 FR 47974 (September 21, 2018), as modified by 83 FR 49153 (September 28, 2018); and 84 FR 43304 (August 20, 2019), as modified by 84 FR 69447 (December 18, 2019); and 85 FR 3741 (January 22, 2020).3See 87 FR 26797 (May 5, 2022).4See 87 FR 33871 (June 3, 2022).[View source.]
statutory review process. With the lack of direction and action from President Biden regarding the tariffs and exclusions, future developments to the China Tariffs have become more and more difficult to predict. However, one thing is clear – the tariffs are here to stay.Importers and members of the trade should closely monitor notices released by the USTR, the President, and U.S. Customs and Border Protection for updates regarding Section 301 Duties. The USTR maintains a database of published information regarding the Section 301 Actions on its website here: https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions. If you have further questions, such as whether your merchandise is subject to Section 301 Duties or qualifies for duty-free treatment under a 301 Exclusion, assistance from Outside trade counsel should be considered.Continuation of Actions: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, 87 FR 55073 (Sept. 8, 2022).Notice of Reinstatement of Certain Exclusions: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, 87 FR 17380 (Mar. 28, 2022).Notice of Product Exclusion Extensions: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, 87 FR 33871 (June 3, 2022).Yellen Says Lowering U.S. Tariffs on Chinese Goods ‘Worth Considering’ by Andrea Shalal, Reuters (April 22, 2022).Press Briefing by Press Secretary Karine Jean-Pierre, White House Briefing Room (July 5, 2022).