On March 22, 2018, President Trump signed a memorandum announcing that the United States would take multiple steps to protect American technology and intellectual property from certain discriminatory and burdensome trade practices by China. These actions were announced following a report by the Office of the U.S. Trade Representative (USTR) regarding China’s acts, policies and practices with respect to technology transfer, intellectual property and innovation.
China’s acts, policies and practices include coercing American companies into transferring their technology and intellectual property to domestic Chinese enterprises, and bolstering China’s stated intention of seizing economic dominance of certain advanced technology sectors, as set forth in industrial policies such as “Made in China 2025.”
On May 29, 2018, the President issued a statement in which he announced that by June 15, 2018, USTR would release a list of $50 billion of goods that are imported from China containing industrially significant technologies that would be subject to an additional 25 percent tariff.
SECTION 301 PRODUCT LIST
- On April 3, 2018, USTR announced a proposed list of approximately 1,300 tariff lines valued at an estimated $50 billion. The list was published in the Federal Register on April 6, 2018.
- To develop the initial proposed list, USTR worked with other agencies to identify products that serve to advance or unfairly benefit from China’s distortive industrial policies.
- This proposed list underwent extensive public comment. Interested persons filed approximately 3,200 written submissions. In addition, USTR and the Section 301 Committee convened a three-day public hearing from May 15-17, 2018, during which 121 witnesses provided testimony and responded to questions.
- USTR and the interagency Section 301 Committee have carefully reviewed the public comments and the testimony at the three-day public hearing. In addition, and in accordance with the President’s direction, USTR and the Section 301 Committee carefully reviewed the extent to which the tariff subheadings in the April 6, 2018 notice cover products containing industrially significant technology, including technologies and products related to the “Made in China 2025” initiative.
- Based on this review process, the list of products announced today:
- Removes 515 product lines from the initial proposed list;
- Recommends adding 284 product lines to target products that benefit from China’s industrial policies;
- Maintains 818 products lines from the initial proposed list unchanged.
- The 284 product lines being proposed will now undergo further review in a public notice and comment process, including a hearing. After completion of this process, USTR will issue a final determination on the products that would be subject to the additional duties.
- USTR will provide an opportunity for the public to request exclusion of a particular product from the additional 25 percent duty. USTR will publish the details of this product exclusion process in a subsequent Federal Register notice.