CPA Applauds Biden Administration’s Increase of Section 301 China Tariffs


Tariff Rates Will Increase on Steel and Aluminum, Semiconductors, Electric Vehicles, Batteries, Solar Cells, Critical Minerals, Ship-To-Shore Cranes, and Medical Products

WASHINGTON — The Coalition for a Prosperous America (CPA) today applauded the Biden administration announcement that it would be increasing Section 301 tariffs on $18 billion worth of imports. The Section 301 China tariffs were first implemented by the Trump administration, a move that CPA strongly supported.

Following an in-depth review by the United States Trade Representative (USTR) Katherine Tai, the President is directing increases in tariffs across strategic sectors such as steel and aluminum, semiconductors, electric vehicles, batteries, critical minerals, solar cells, ship-to-shore cranes, and medical products.

A recent economic analysis by CPA Chief Economist Jeff Ferry documents that tariffs have strengthened the U.S. economy and “led to significant reshoring in certain industries.” Further economic analysis from CPA’s Economics Team shows that the Section 301 tariffs imposed in 2018 on Chinese imports reduced U.S. dependence on China. Additionally, a report by the U.S. International Trade Commission (USITC) analyzing the effects of Section 232 and Section 301 tariffs on more than $300 billion of U.S. imports found that the tariffs reduced imports from China and effectively stimulated more U.S. production of the tariffed goods, without impacting consumer prices.

“On behalf of our members that are committed to producing in the U.S. and creating high-paying American jobs, we applaud President Biden and Ambassador Tai for taking this important action to increase Section 301 China tariffs in these critical industries,” said Zach Mottl, Chairman of CPA. “There is overwhelming evidence, including from the USITC, that proves what CPA has been saying for more than a decade: tariffs are a critical reshoring tool to stimulate domestic production, avoid future inflation, and to reduce dependence on foreign supply chains. Importantly, the Biden administration’s action to increase the China tariffs is a strong signal that we are in a new bipartisan era of utilizing tariffs and industrial policy to promote fair and balanced trade, and to protect American workers and manufacturers from China’s illegal, predatory trade activity.”

Earlier this month, CPA applauded a letter from House Ways and Means Committee Chairman Jason Smith (MO-08) and Trade Subcommittee Chairman Adrian Smith (NE-03) highlighting the importance of the Section 301 tariffs on China in protecting American workers, manufacturers, and small businesses from China’s egregious unfair trade practices.

Additionally, CPA also welcomed a letter led by U.S. Senator Sherrod Brown (D-OH) calling on President Biden and Ambassador Tai to maintain or increase the Section 301 China tariffs. Brown was joined by U.S. Senators Bob Casey (D-PA), Tammy Baldwin (D-WI), John Fetterman (D-PA), Gary Peters (D-MI), Chuck Schumer (D-NY), and Debbie Stabenow (D-MI).

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