US Extends China Tariff Exemptions to August 31 Amid New 301 Probe

1. Tariff Exclusions Extended

• New Deadline: August 31, 2025 (from May 31).

• Scope: Covers 164 exclusions renewed in May 2024 + 14 new exclusions from September 2024.

• Rationale: Based on public comments and interagency review (USTR).

2. New 301 Investigation (April 17)

• Targets: China’s shipbuilding, logistics, and maritime sectors.

• U.S. Claims: Alleged "unfair practices" harming American competitiveness.

• China’s Response:

• "Baseless accusations" violating WTO rules.

• Cites U.S. $100B+ subsidies to domestic industries as hypocritical.

3. Context & Data

• Trump-Era Tariffs: Average U.S. duties on Chinese goods fell from 19.3% (2020) to 10.7% (2024) due to export shifts (PIIE).

• WTO Rulings: Previous 301 tariffs deemed illegal; U.S. ignored rulings.

Why This Matters:

Short-Term Relief: Extended exclusions benefit U.S. importers of machinery/consumer goods.
⚠️ Long-Term Risks: New 301 probe could escalate tariffs on $50B+ maritime trade.
Global Impact: Further strains WTO system; may trigger Chinese countermeasures.

Quotes:

• USTR: "Review ensures tariffs align with economic priorities."

• China’s Commerce Ministry: "U.S. protectionism won’t revive its uncompetitive industries."

Action Items for Businesses:

✅ Check Exclusion Lists: Confirm if your products qualify (USTR Docket No. USTR-2023-0014).
Prepare for Volatility: New maritime tariffs could hit by Q4 2025.

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