Bipartisan Letter From 102 House Members Asks for New Round of Section 301 Exclusion Applications

Two Democrats and two Republicans on the House Ways and Means Committee, along with 98 colleagues, are asking the Office of the U.S. Trade Representative to re-establish an application process for exclusions to Section 301 tariffs. In an April 27 letter, led by Reps. Ron Kind, D-Wis., Jackie Walorski, R-Ind., Suzan DelBene, D-Wash., and Rep. Darin LaHood, R-Ill., they also say they believe companies that had exclusions that have expired should have expedited procedures for getting a new exclusion.

“We appreciate USTR’s recent extension of tariff exclusions for COVID-19-related products. However, we feel that the current exclusions are insufficient to provide the badly needed relief for businesses and workers struggling with the unprecedented economic hardship caused by the pandemic,” they wrote. “We all agree that we need to execute a bold, strategic plan to hold China accountable for its unfair trade practices, while encouraging businesses to manufacture and operate in the United States. However, while we strategically and comprehensively engage with China, including through tough enforcement, we must also support good-paying jobs in the United States. Many U.S. companies are eager to move supply chains out of China for a variety of reasons and began seeking reliable alternative suppliers over the last several years. However, in many instances those efforts were crippled by travel disruptions and global economic turmoil prompted by COVID-19, particularly for smaller U.S. businesses that do not have a global footprint.”

USTR Katherine Tai was pressed on this question during a Senate Appropriations subcommittee hearing on April 28. She did not commit to restoring expired exclusions or allowing new applications, but said in general she agrees that exclusions should be available to tariff actions like these. She said she knows that both the exclusions and the Section 301 tariffs themselves “are very consequential to stakeholders large and small,” and while she wants to evaluate both the tariffs and the exclusions as part of an evaluation of how the U.S. can be more strategic and effective in China trade policy, she also said, “I am keenly aware time is of the essence.”