The Office of the United States Trade Representative ("USTR") today published a Federal Register notice announcing its final modifications to its Four-Year Statutory Review of U.S. Section 301 tariffs on a range of Chinese-origin goods. While the USTR declined to modify its proposed increase of additional duties on electric vehicles (to 100 percent in 2024), lithium-ion electric vehicle batteries and lithium-ion non-electric vehicle batteries (to 25 percent in 2024 and 2026, respectively), certain critical minerals (to 25 percent in 2024) or battery parts of non-lithium ion batteries (to 25 percent in 2024), changes will be implemented regarding the timing and rates of tariffs for other products, as well as exclusions for certain products. An overview of the most significant updates can be found below:
- Face masks: Tariff rates for face masks will be increased to 25 percent in 2024 and further to 50 percent in 2026. Additionally, statistical reporting number 6307.90.9870 (face masks of textile, disposable) has been added. Previously, USTR proposed raising the rate of additional duties to 25 percent in 2024.
- Medical gloves: Tariff rates for medical gloves will be increased to 50 percent in 2025 and to 100 percent in 2026. Previously, USTR proposed raising the rate of additional duties to 25 percent in 2026.
- Needle syringes: Additional duties for needles and syringes will be increased to 100 percent in 2024. Previously, USTR proposed raising the rate of additional duties to 50 percent in 2024
- Ship-to-shore cranes: Although the USTR will not be modifying the proposed additional duties of 25 percent in 2024, but will allow for exclusion for cranes that fulfill contracts executed prior to May 14, 2024 and that enter the U.S. prior to May 14, 2026.
- Machinery under HTSUS Chapters 84 and 85: Five new subheadings have been added to be eligible for temporary exclusions. These subheadings are: 8421.21.00 (Machinery and apparatus for filtering or purifying water); 8421.29.00 (Filtering or purifying machinery and apparatus for liquids, nesoi); 8421.39.01 (Filtering or purifying machinery and apparatus for gases, other than intake air filters or catalytic conv. for internal combustion engines); 8428.70.00 (Industrial robots); and 33 8443.19.30 (Printing machinery, nesoi).
- Solar manufacturing equipment: USTR has decided against implementing its five proposed exclusions for equipment to manufacture solar modules. However, USTR will be adopting the 14 proposed exclusions for equipment related to solar wafer and cell manufacturing. These exclusions will be effective January 1, 2024 through May 31, 2025
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