News October 04, 2021
Tariff Exemptions Back In Play For U.S. Importers
Word that U.S. importers can again apply for exemptions to tariffs on China-made goods comes as trade talks between the superpowers look set to resume.
Promotional product companies and businesses across industries will soon be able to apply for exemptions to the United States’ tariffs on imported China-made goods.
U.S. Trade Representative Katherine Tai has announced that President Joe Biden’s administration will resume allowing American companies to seek the exemptions from the levies, which were instituted under President Donald Trump on roughly $370 billion worth of Chinese products that are brought into the United States annually.
The tariffs have contributed to increased costs for importers, including those in promo, and have been a factor in driving price increases on some promotional products. The majority of promotional products sold in North America are manufactured in China.
Under rules instituted under Trump, American-based importers were allowed to seek and receive exemptions to the tariffs if they could prove there was no viable alternative to Chinese imports for their products. The ability to apply for an exemption expired under Biden, but the president’s administration is now reinstituting it as it begins to engage in new trade talks with China.
But above all else, we must defend – to the hilt – our economic interests.
— Ambassador Katherine Tai (@AmbassadorTai) October 4, 2021
That means taking all steps necessary to protect ourselves against the waves of damage inflicted over the years through unfair competition.
While tariff exemptions are back on the table, the administration has no intention of removing the levies. It could even consider imposing additional tariffs to gain more leverage as it negotiates with Beijing. In part, the talks will focus on trying to get China to live up to the terms of the so-called “Phase One” trade deal the two nations signed in January 2020.
That deal required China to increase purchases of U.S.-made agricultural, energy products and manufactured goods, but so far China has fallen well short of the required purchasing – about 40% or so in 2020 alone.
In announcing the new talks and reopened tariff exemption process, Tai said that the U.S. “will use the full range of tools we have and develop new tools as needed to defend American economic interests from harmful policies and practices.”