USTR Provides Opportunity To Request Continuation Of Section 301 Tariffs On China

The Office of the United States Trade Representative (USTR) has initiated its second four-year review process of the Section 301 tariffs on China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation. As part of the first phase in its review process, USTR is notifying domestic industries benefitting from these actions of their possible termination and the opportunity to request continuation of the tariffs for another four years.

Background

Under Section 301 of the Trade Act of 1974, as amended, USTR took actions for certain products from China in 2018 after an investigation into the country’s technology transfer and intellectual property practices. Two actions were taken, one effective on July 6, 2018 and the other on August 23, 2018. Both actions imposed 25% tariffs on Chinese goods. The first action (List 1) applied to products with an approximate annual trade value of $34 billion, while the second action (List 2) covered products valued at approximately $16 billion per year. Every four years, USTR is legally required to review the Section 301 investigation to determine if the duties are still necessary.

This second statutory four-year review comes after the continuation and subsequent modification of these actions during the first four-year review, which included expanding the tariffs to additional products and implementing certain product exclusions. The second four-year review covers the two actions (the July 6, 2018 action and the August 23, 2018 action) and all subsequent modifications, including products covered by supplemental lists such as List 3 and List 4A and product exclusions. Unless domestic industry parties submit comments in support of continuation, USTR has indicated that it will likely allow the Section 301 tariffs to expire on their respective four-year anniversary dates.

Opportunity to Request Continuation

Domestic industries have the opportunity to request continuation of the actions. USTR has given two 60-day windows for these requests:

• Between May 7, 2026 and July 5, 2026, for the July 6, 2018 action.
• Between June 24, 2026 and August 22, 2026, for the August 23, 2018 action.

Domestic industry parties that benefit from the tariffs are encouraged to submit requests for continuation through the USTR portal. If a domestic industry benefits from both actions, requests should be submitted under each action. Commenting can help ensure that Chinese imports are still subject to additional 25% duties and protect domestic manufacturers and IP rights holders.

The next phase will include USTR soliciting comments from interested parties in a separate online portal regarding “the effectiveness of the action in achieving the objectives of Section 301, other actions that could be taken, and the effects of such actions on the United States economy, including consumers.” Providing comments twice ensures that USTR will take into consideration requests from the domestic industry – including any additional HTS codes that would increase the effectiveness of the action. 

Conclusion

By submitting comments requesting a continuation, U.S. companies, industry groups, and trade associations have a strategic opportunity to influence USTR’s continuation of the Section 301 actions regarding China’s technology transfer, intellectual property, and innovation practices. Parties will be able to assist in ensuring issues of particular concern are prioritized in USTR’s review.