Prof. ST Hsieh
Director, US-China Energy Industry Forum
626-376-7460
March 23, 2022
USTDA’s announcement is good news, even it is very a small step forward. It also should be noted that it is a unilateral action by the US for the US. It is far from the US public demand: businesses as well as Democratic and Republican lawmakers to alleviate the tariff burden, which critics say exacerbate supply issues and drive up prices as the United States deals with a record wave of inflation.
In reference to Ambassador Tai’s comment “we’re in a very difficult stage of this trade relationship” and “the conversations are not easy.” US and China are in a very difficult stage of this relationship, not just the trade relationship is difficult. Trade relationship is important, but it does not stand alone or can be managed without a clearcut bilateral relationship. Further, the conversations do not have to be that difficult if both parties respect each other and ready to negotiate (rather than just making demands!)
STH
USTR Issues Determination of Reinstatement of Certain Exclusions from China Section 301 Tariffs
WASHINGTON – The Office of the United States Trade Representative today announced its determination to reinstate certain previously granted and extended product exclusions in the China Section 301 Investigation. The determination reinstates 352 of the 549 eligible exclusions. The reinstated product exclusions will apply as of October 12, 2021, and extend through December 31, 2022.
The reinstated exclusions are set out in the Federal Register notice, which can be viewed here.
On October 8, 2021, USTR invited comments on whether to reinstate 549 previously granted and extended exclusions. Today’s determination was made after careful consideration of the public comments, and in consultation with other U.S. agencies.
US reinstates tariff exemptions on some Chinese products
Wed, March 23, 2022, 1:36 PM
The US government announced Wednesday it will reinstate tariff exemptions for 352 Chinese products first hit with punitive duties in 2018, when then-president Donald Trump started a trade war with Beijing.
The exemptions lapsed in late 2020, but President Joe Biden’s administration last October began seeking opinions on which of 549 eligible Chinese products should once again be excluded from the tariffs.
In a statement, the US Trade Representative (USTR) said, “Today’s determination was made after careful consideration of the public comments, and in consultation with other US agencies.”
The exclusions are retroactive to October 12 of last year and extend through the end of 2022, USTR said in a statement.
The Biden administration has been under pressure from businesses as well as Democratic and Republican lawmakers to alleviate the tariff burden, which critics say exacerbate supply issues and drive up prices as the United States deals with a record wave of inflation.
The trade conflict between the US and China began when Trump imposed tariffs on $370 billion worth of Chinese products, citing “unfair” trade practices.
However more than 2,200 exclusions were granted and 549 of those were extended, with most of the exclusions expiring at the end of 2020.
Washington and Beijing in January 2020 signed a so-called “phase one” trade agreement under which Beijing pledged to increase its purchases of American products and services by at least $200 billion over 2020 and 2021 — a target China fell short of amid the Covid-19 pandemic.
US Trade Representative Katherine Tai has pledged to “engage robustly” with Beijing over its commitment to the deal, but said in January that “we’re in a very difficult stage of this trade relationship” and “the conversations are not easy.”