Industrial Machinery Section 301 Exclusion Request Process Also Will Provide for Objections

Full details about the Section 301 exclusion process will be revealed next week, but a White House memo said that importers of machinery in chapters 84 and 85 will need to submit requests for exclusions, even though the Office of the U.S. Trade Representative already has compiled a list of HTS codes it sees as appropriate targets for exclusions. The memo said there will be a way to register opposition to those requests, as well. The memo said the USTR "shall prioritize, in particular, exclusions for certain solar manufacturing equipment."

At a press conference after the announcement of the changes to Section 301 tariffs, which include a 100% duty on Chinese electric vehicles, USTR Katherine Tai was asked how the government could protect domestic automakers from import competition from the Chinese automotive sector, if BYD or other Chinese firms began production in Mexico.

"At USTR, that is exactly what we are built to worry about and to be concerned with. That will require a separate pathway. This is about imports from China. What you’re talking about would be imports from Mexico. Equally important -- something that we were talking to our industry, our workers, and our partners about. And I would just ask you to stay tuned," Tai replied.

Another reporter followed up, asking Tai if there could be changes to the USMCA rules to prevent the import of Chinese-brand cars, and she replied: "What I’m saying is the fact pattern that’s developing is one that is of serious concern to us and that, at USTR, we are looking at all of our tools to see how we can address the problem."