USTR Issues Notice Regarding Statutory Four-Year Review of China 301 Tariffs

USTR (the U.S. Trade Representative's office) announced on 3^rd May that its two actions which based on the results of the so-called section 301 investigation to impose additional tariffs on Chinese imports to the US will end on 6^th July and 23^rd August, respectively.  With immediate effect, the office will initiate a statutory review of the action.

USTR said in a statement on the same day that it will inform representatives of domestic industries in the US that benefit from the tariffs on China that the tariffs may be lifted. Industry representatives have until 5^th July and 22^nd August to apply to the office to maintain the tariffs. The office will review the relevant tariffs on the basis of the application, and these tariffs will be maintained during the review period.

The investigation is divided into two phases, the first of which is submitted by industry representatives of US stakeholders and opened for trial to request the continuation of the modified corresponding trade action. The second phase of the review will be announced in one or more follow-up notices and will provide an opportunity for public comment from all interested parties (all businesses and individuals).

So-called "301 investigation" originates from Section 301 of the US Trade Act of 1974. The clause authorizes the US Trade Representative to launch an investigation into other countries' "unreasonable or unjust trade practices" and, after the investigation, recommends that the US president impose unilateral sanctions.

This investigation was initiated, investigated, adjudicated and implemented by the U.S. itself, and it has a strong unilateralism. According to the so-called "301 investigation", the US has imposed 25% tariffs on goods imported from China in two batches since July and August 2018. The US imposition of tariffs on China has been strongly opposed by the US business community and consumers. Due to the sharp increase in inflationary pressures, there has been a resurgence of calls in the US to reduce or exempt additional tariffs on China recently.

Dalip Singh, deputy assistant to the US president for national security affairs, said recently that some of the tariffs imposed by the US on China "lack a strategic purpose." The federal government could lower tariffs on Chinese goods such as bicycles and clothing to help curb price increases.

The spokesperson of China's Ministry of Commerce previously stated that the unilateral tariff increase by the U.S. is not conducive to China, the United States, and the world. In the current situation where inflation continues to rise and the global economic recovery faces challenges, it is hoped that the U.S. side will proceed from the fundamental interests of consumers and producers in China and the U.S., cancel all additional tariffs on China as soon as possible, and push bilateral economic and trade relations back to the normal track as soon as possible.