On May 14, 2024, the USTR released its report summarizing the four-year review of the Section 301 tariff actions taken on imports from China. Following the release of the report, the USTR announced two proposed modifications to the Section 301 China Tariffs.

1.) Increasing the Section 301 tariff in a few key sectors:

Battery parts (non-lithium-ion batteries): Increase rate to 25% in 2024
Electric vehicles: Increase rate to 100% in 2024
Facemasks: Increase rate to 25% in 2024
Lithium-ion electrical vehicle batteries: Increase rate to 25% in 2024
Lithium-ion non-electrical vehicle batteries: Increase rate to 25% in 2026
Medical gloves: Increase rate to 25% in 2026
Natural graphite: Increase rate to 25% in 2026
Other critical minerals: Increase rate to 25% in 2024
Permanent magnets: Increase rate to 25% in 2026
Semiconductors: Increase rate to 50% in 2025
Ship to shore cranes: Increase rate to 25% in 2024
Solar cells (whether or not assembled into modules): Increase rate to 50% in 2024
Steel and aluminum products: Increase rate to 25% in 2024
Syringes and needles: Increase rate to 50% in 2024

Details as to exactly which HTSUS numbers these changes will apply can be found in the USTR publication. The proposed effective date for increases in 2024 would be August 1, 2024. The proposed increases in 2025 and 2026 would be on January 1st of each respective year.

2.) The USTR proposed re-opening up the exclusion application process for products in a few key sectors of machinery.
Importers who are planning to import machinery used in domestic manufacturing should closely review Annex B of the USTR publication. If your machinery is classified under one of the HTSUS classifications provided in Annex B, you may be able to submit an application to the USTR to request an exclusion from the section 301 tariff. Note that this is only a proposal at this time. If you are interested in applying for a machinery based exclusion, you can submit a comment to the USTR in favor of the proposal