What Happens if the Section 301 Tariffs Are Lifted?

As U.S. manufacturers await the Biden Administration’s decision on whether or not, and when, to remove Section 301 Tariffs from Chinese imports, they should explore how they can compete against the expected surge of lower priced imports following the announcement. Dan Pickard, Chair of Buchanan’s International Trade & National Security Practice, suggests antidumping suits may provide a meaningful solution.

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Video Transcript

Dan Pickard: One of the more interesting issues right now in regard to international trade under the Biden administration in regards what are called the Section 301 Tariffs.

In 2018 and 2019, the White House initiated what is called a Section 301 investigation. Which was an investigation in regard to alleged violations of China’s obligations in regard to intellectual property holders. As a result, the White House ordered what are called the 301 duties. They are 25% increased taxes on $250 billion worth of Chinese imports. These tariffs have been in effect for several years.

There was a lot of commentary in D.C. and expectations by some that when President Biden came in, he would be removing the 301 duties. That has not occurred, but these duties weren’t intended to be permanent. So, the question is going to be, “What’s going to happen to the near and medium term? Will some of these duties be removed piecemeal, or will it be done all at once?” What isn’t in question is that the next day, after these decisions are made, Chinese imports will become 25% cheaper and U.S. manufacturers are going to have to find a meaningful way to compete against the expected surge of lower priced imports. Which, more than likely, will increase demand, again, for U.S. antidumping cases. One of the few remaining tools available for U.S. manufactures to obtain meaningful relief against unfairly priced imports.