WASHINGTON — The Coalition for a Prosperous America (CPA) is disappointed that 301 tariff exclusions were extended on 352 products being imported from China. Last year, CPA urged the Biden administration to not renew any of the 549 exclusions that were originally granted. In February, CPA called on the Biden administration to fully implement all tariffs the U.S. government imposed on China pursuant to Section 301 of the 1974 Trade Act because China violated the Phase One deal.
Earlier this year, CPA reviewed importers’ latest submissions and found a large majority of them to be without merit. Importers are required to demonstrate that their product line cannot be found in the U.S. or outside of China in order to receive an exclusion. After reviewing the petitions of fabricators (e.g., tool & die makers, foundries, mold-makers, etc.), CPA found a number of exclusion petitions that should not be granted. The products identified in these petitions can be made in the U.S. or in other countries outside of China. CPA believes strongly that the Biden administration should not grant any exclusion petition unless the importer can offer evidence that they solicited orders from custom fabricators outside of China.
“Once again, multinational importers and their army of Washington lobbyists have protected their ability to import cheap Chinese goods over sourcing from American manufacturers,” said CPA Chairman Zach Mottl. “We are disappointed that the Biden administration granted exclusions to the 301 tariffs on many Chinese products that have alternatives that are made or could be made right here in America, or are made outside of China. As China supports and enables Russia’s aggression against Ukraine, we should be decoupling rather than providing their companies revenue from U.S. consumers. We will continue to fight against those in Congress who want to use taxpayer dollars to refund importers that profit off of cheap Chinese goods, as well as efforts to weaken the 301 tariffs despite China’s continued IP theft, rampant government subsidization, use of forced labor, and violation of the Phase One trade deal.”
Last October, CPA called out rampant misrepresentation and abuse by importers seeking exclusions from the Section 301 tariffs against China in a letter to the Office of the United States Trade Representative (USTR). Multinationals that import Made in China merchandise filed two thirds of the exclusion requests shortly before the deadline to prevent domestic producers from showing that there are Made in USA alternatives.
