The US extends tariff exclusions for some Chinese categories until May 31

The office of United States Trade Representative Katherine Tai announced on Tuesday a new extension of the “Section 301” tariff exclusions of China in 352 Chinese imports and 77 categories related to COVID-19 until May 31, 2024.

Former President Donald Trump’s administration used Section 301 of the Trade Act of 1974, a statute intended to combat unfair practices by trading partners, to launch tariffs on China in 2018 and 2019.

Import tariff exclusions include industrial components such as pumps and electric motors, some automobile parts and chemicals, bicycles and vacuum cleaners. COVID-related exclusions include medical products such as masks, exam gloves, and hand sanitizer wipes.

The exclusions were previously scheduled to expire on December 31. The extension to May 31 will allow for further consideration under a four-year legal review, Tai’s office said in a statement.

Context

The president of United States, Joe Bidenmaintained the additional tariffs applied to a large number of Chinese exports during the previous Trump administration and added new restrictions prohibiting the export of advanced semiconductors and the equipment to make them, citing security concerns.

trump imposed tariffs in 2018 and 2019 on thousands of imports from China valued at the time at about $370 billion, after a “Section 301” investigation found that China was misappropriating U.S. intellectual property and coercing American companies to transfer sensitive technology to do business.

China has called the United States’ 301 tariffs on Chinese imports “discriminatory.”

Tariffs are just one component of the tensions in relations between USA and China in the last times. Other contentious topics include Taiwan, espionage accusations, human rights and the origins of the COVID-19 pandemic.

Last week, China also extended tariff exemptions for some products imported from the United States until July 31, 2024, according to the Chinese Ministry of Finance.