U.S. extends China tariff exclusions, some until 2025

Trade Updates:

The U.S. Trade Representative’s office announced an extension of all China Section 301 tariff exclusions on 352 Chinese imports and 77 pandemic-related categories through June 14. Some exclusions will last until May 31, 2025.

Importance of the Trade Decisions

Former President Donald Trump utilized the Trade Act of 1974 to impose tariffs on Chinese imports in 2018 and 2019 as part of efforts to combat unfair trade practices.

Friday’s extension means certain products like animal-feeding machinery, electric motors, blood pressure monitors, and thermostats will continue to be exempt from import tariffs.

Future Implications

Initially set to expire on May 31, the exclusions have been prolonged until June 14 to facilitate a smooth transition. Some exclusions will now remain until May 31, 2025, to assist in diversifying sourcing away from China.

However, USTR noted that products like garage-door openers, vehicle switches, and electric motorcycles will face renewed tariffs, as efforts to shift away from Chinese sourcing did not show progress.

Current Trade Dynamics

President Joe Biden has maintained and expanded tariffs on Chinese exports, citing security concerns. New restrictions on advanced semiconductors and increased tariffs on various imports, including electric vehicles, aim to bolster domestic manufacturing.

Trump’s initial tariffs were a response to China’s misuse of U.S. intellectual property. The ongoing trade tensions underscore the broader challenges faced in U.S.-China relations.

China has criticized the U.S. for its discriminatory trade policies. Beyond trade, issues like Taiwan, espionage allegations, human rights, and the pandemic’s origin further strain relations between the two nations.

Source: Image by Reuters: A man has his blood pressure checked at the Remote Area Medical Clinic in Wise, Virginia, U.S., July 22, 2017. REUTERS/Joshua Roberts/File photo