US Extends Tariff Exemptions On Chinese Medical Products

The U.S. Trade Representative announced on the 27th that it will extend the exemption from punitive tariffs on some Chinese medical products for another six months to November 30.

The U.S. Trade Representative’s office said the tariff exemptions covering 81 health care products needed to deal with the new crown epidemic were due to expire on May 31. The exemption was first announced in December 2020 and has been extended once in November 2021.

Products on the exempt list include masks, medical rubber gloves, hand sanitizer pump bottles, plastic containers for disinfecting wipes, fingertip pulse oximeters, blood pressure monitors, MRI machines and x-ray tables, among others.

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Former U.S. President Donald Trump slapped tariffs on $350 billion worth of Chinese imports, citing what he called unfair trade practices and the theft of U.S. intellectual property, the report said. But with U.S. inflation at its highest level in more than 40 years, current President Joe Biden is under pressure to lift tariffs on China.

U.S. Trade Representative officials said they were reaching out to businesses and the public for comment on whether to extend the tariffs.

USTR issued a statement on May 3, saying that it will inform representatives of domestic industries in the United States who benefit from the tariffs on China that the relevant tariffs may be lifted. Industry representatives have until July 5 and August 22 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 U.S. 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 comments from all interested parties (all businesses and individuals).

China's Ministry of Commerce has repeatedly expressed the hope that the U.S. side will proceed from the fundamental interests of consumers and producers in China and the U.S. to cancel all additional tariffs on China as soon as possible.