Section 301 Tariffs Continue to Add Costs in COVID-19 Fight, Companies Tell USTR

General Motors, noting that its financial resources are strained with a shutdown of vehicle manufacturing, asked the U.S. trade representative last week to lift Section 301 tariffs on eight components it will be importing from China to make ventilators in Kokomo, Indiana. The letter was posted at regulations.gov on April 2.

The car company told USTR, “One key element of GM’s participation in this project is our ability to draw on our manufacturing capability and our global supply base.” It said it will be buying a gasket for the bacterial filter, a gasket for the filter cartridge on the suction canister, a gasket for the compressor silencers baffle, a bellows seal for the compressor silencer, a bellows seal for cough assist, a bellows seal for patient air intake, all covered by Harmonized Tariff System code 3926.90.4590; a grommet on the main chassis, HTS code 3926.90.9990; and a 10-foot power cord, HTS code 8544.42.9090.

“Given the nature of the effort, GM is donating its resources at cost,” the letter said, and told USTR that lifting the tariff would ease the burden on both it and Ventec, the ventilator manufacturer it is partnering with, and would ensure the parts arrive as soon as possible.

The agency reversed itself on an exclusion request for Purell, a major hand sanitizer manufacturer, and home-state Sen. Rob Portman, R-Ohio, praised the decision on April 4. Tariffs had been applied to two parts used in the hand-pump assemblies. “Hand sanitizer companies like Gojo need to increase production and distribution to accommodate the increased demand due to the ongoing coronavirus pandemic,” Portman said in a release, “and their investment will go further now that this relief has been granted.” Portman, a former USTR, said he intervened personally with USTR Robert Lighthizer.

A lawyer writing on behalf of Home Depot asked the USTR to drop Section 301 tariffs on N95 masks, HTS 6307.90.9889; safety glasses, 9004.90.0000; and disposable nitrile, neoprene, latex, or vinyl gloves, coated gloves, infrared thermometers, imported from China, in requests that were posted April 3. USTR has added a FAQ to its website on applying for COVID-19 related requests.