The Era of 301 Exclusions Nears its End

Starting June 15, importers of numerous goods from China will face higher tariff costs as the Biden administration has decided not to renew Section 301 tariff exclusions for many products. This change means that hundreds of goods will no longer benefit from reduced tariffs, impacting importers significantly.

The Office of the U.S. Trade Representative (USTR) has announced that current exclusions for 352 products and 77 medical care items, will be terminate on June 14th. These exclusions apply to any product that matches the specified Harmonized Tariff Schedule of the United States (HTSUS) numbers and descriptions, regardless of whether an importer requested the exclusion.

After June 14th, USTR will continue tariff exclusions for only 164 products, as detailed in Annex C of their latest notice, extending these exclusions through May 31, 2025.

Importers should prepare for these changes and adjust their cost forecasts accordingly.