Section 301 Tariff Review Seen as Unlikely to Lead to Policy Change

Sidley lawyer Ted Murphy says he doesn't expect a review of Section 301 tariffs to lead to a policy change on the tariffs, which cover about $300 billion worth of Chinese imports annually. He said that even though a review of the tariffs has to evaluate how effective the actions have been, and has to analyze how the tariffs have affected consumers, "if it ultimately concludes that the additional duties have been only mildly effective and/or have had a negative impact on U.S. interests (businesses and/or consumers), there is no requirement that the USTR take any action. As a result, we do not think that this effort is likely to present a meaningful opportunity for change." Murphy wrote those sentences in bold, for emphasis. Still, he said it is possible, given the messages from some corners of the administration that goods such as bicycles or apparel should not be facing higher tariffs, that "additional duties on certain non-strategic consumer goods may be lifted."

Murphy noted that lists 3 and 4a, which cover the bulk of the products, will not have their own dockets, since they are seen as modifications to the List 1 and List 2 decisions. In the same blog, Murphy said he is hopeful that a China package will pass out of Congress this year, and that it will include a requirement for a broader Section 301 tariff exclusion process.