The US reinstated tariff exemptions for 352 Chinese imports

The US reinstated tariff exemptions for 352 Chinese imports

On March 23 local time, the Office of the US Trade Representative (USTR) announced that it has restored tariff exemptions for 352 out of 549 pending tariffs imposed on Chinese imports under the so-called section 301. This includes industrial parts such as pumps and motors, some auto parts, some chemicals, backpacks, bicycles, vacuum cleaners and other consumer goods.

The RULE applies to goods imported from China between October 12, 2021 and December 31, 2022, the USTR said.

According to Reuters, the exemption covers about 370 billion dollars worth of Chinese imports. Former US President Donald Trump imposed punitive tariffs of between 7.5 and 25 per cent on these goods during his presidency.

Under the Trump administration, the US initially approved tariff exemptions on more than 2,200 Chinese goods to ease the economic burden on US businesses, the report said. Most of the exemptions for goods expired, but 549 tariff exemptions were extended by one year to expire at the end of 2020.

In October 2021, the OFFICE of the United States Trade Representative (USTR) asked for comments on whether to restore tariff exemptions for these 549 Chinese imports.

In fact, there have been calls in the US to lower tariffs on China. More than 1,000 U.S. companies, "hurt by the tariffs," have written to the OFFICE of the U.S. Trade Representative seeking tariff cuts. A bipartisan group of 41 US senators also called for the establishment of a comprehensive "exemption process" to expand the range of Chinese goods eligible for tariff exemptions.

At present, prices in the United States continue to rise, serious inflation. The CONSUMER price index (CPI) rose 7.9% in February from a year earlier, another 40-year high. As the U.S. Treasury Secretary noted in 2021, tariffs tend to drive up domestic prices in the United States, and lowering tariffs would have the effect of "suppressing domestic inflation in the United States."

Some US experts see the tariff exemptions as proof that China is crucial to global supply chains that benefit the US.

"This will help normal trade of related products," said Shu Jutting, spokeswoman for China's Ministry of Commerce. China always believes that unilateral tariffs imposed by the US are not good for China, the US and the world. As inflation continues to rise and global economic recovery faces challenges, it is hoped that the US side will act in the fundamental interests of consumers and producers in both countries, remove all additional tariffs on China as soon as possible and bring bilateral economic and trade relations back to the normal track at an early date."