From the SEMA Washington, D.C., office
The Office of the U.S. Trade Representative (USTR) recently announced that it plans to discontinue 265 exclusions from tariffs on Chinese-origin products that were first assessed in 2018 and 2019 pursuant to Section 301 of the Trade Act of 1974.
Below are some of the exclusions that USTR did not renew, which may impact industry businesses:
- Wheel speed sensors for anti-lock motor vehicle braking systems, each valued not over $12 (described in statistical reporting number 8543.70.4500).
- Artificial graphite, in powder or flake form, for manufacturing into the lithium-ion anode component of batteries (described in statistical reporting number 3801.10.5000).
- Hydraulic valve lifters of steel with rollers, suitable for use solely or principally with spark-ignition internal combustion piston engines (other than for aircraft engines, marine propulsion engines or for vehicles of subheading 8701.20, or headings 8702, 8703 or 8704), each measuring 5 cm or more but not over 13 cm in length and 2.5 cm or more but not over 3.9 cm in diameter and weighing 135 g or more but not over 410 g (described in statistical reporting number 8409.91.9990).
- Solid valve lifters of steel, suitable for use solely or principally with spark-ignition internal combustion piston engines (other than for aircraft engines, marine propulsion engines or for vehicles of subheading 8701.20, or headings 8702, 8703 or 8704), each measuring 19 mm or more but not over 114 mm in length and 6 mm or more but not over 26 mm in diameter and weighing 20 g or more but not over 250 g (described in statistical reporting number 8409.91.9990).
- Tire carrier attachments, roof racks, fender liners, side protective attachments, the foregoing of steel (described in statistical reporting number 8708.29.5060 prior to January 27, 2022; described in statistical reporting number 8708.29.5160 effective January 27, 2022).
- Flange forgings of Society of Automotive Engineers (SAE) 1035 carbon steel (described in statistical reporting number 8708.40.7570).
- Hub forgings of SAE 1035 carbon steel (described in statistical reporting number8708.40.7570).
- Front output shafts of SAE 1045 carbon steel suitable for use in automatic transmission systems for passenger motor vehicles (described in statistical reporting number 8708.99.6890).
Annex D contains an exhaustive list of items being removed from the exclusions list. Annex C contains all items being renewed through May 2025. You can access both lists here.
USTR did not extend exclusions for some of the following reasons: "importers had no plans to shift sourcing out of China in 2024 (or at all)," and "commenters reported that they had taken few or no steps to shift sourcing out of China" after receiving temporary exclusions for over four years, there was availability to source products domestically or outside of China, and where commenters noted that products couldn’t be purchased cheaper from anywhere other than China.
In addition to the exclusions that will expire on June 14, 2014 (Annex D), USTR also announced that it will extend 164 exclusions from China tariffs through May 31, 2025 (Annex C). The agency maintains that extending Annex C exclusions will "support efforts to shift sourcing out of China, or provide additional time where, despite efforts to source products from alternative sources, availability of the product outside of China remains limited."
The announcement comes on the heels of the USTR’s statutorily mandated "four-year review" of the Section 301 tariffs, which were first imposed in 2018 on a wide range of products manufactured in China. SEMA encouraged members in early 2023 to provide feedback to the agency if their business is affected by the Section 301 tariffs.
If your business has been impacted by the Section 301 tariffs, contact Tiffany Cipoletti at tiffanyc@sema.org.