The United States Trade Representative (USTR) has announced that it will be delaying the start of the Section 301 China tariff modifications that were set to begin on August 1.

USTR says it received more than 1,100 comments from the public in response to the proposed modifications, which were announced on May 28. Because it’s still reviewing those comments, USTR expects its final determination will now be issued later this month.

  • The modifications will take effect approximately two weeks after the final determination is made public, the USTR says.


Background/Details Of Tariff Modifications

In late May, the USTR made public the long-awaited report of its four-year investigation into Section 301 Chinese tariffs that were initially put in place by the Trump Administration in 2017. These tariffs were established after an investigation concerning China’s trade practices, concluding that the country was guilty of several practices deemed suspicious or to unfairly burden the U.S.

Temporary exclusions for several categories of goods had been granted concerning the tariffs, but on May 31 many of those exclusions expired, affecting hundreds of products.

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U.S. businesses ranging across myriad industries awaited the results of the four-year investigation, largely hoping that it might bring findings that would justify easing the Chinese tariffs on products relied upon by many small and large businesses.

  • The investigation considered the tariffs’ effects on the U.S. economy, the supply chain and how effective the tariffs were in curtailing China’s unfair practices.


“China has not eliminated many of its technology transfer-related acts, policies and practices, which continue to impose a burden or restriction on U.S. commerce,” the investigation reported. “Instead of pursuing fundamental reform, China has persisted, and even become more aggressive, particularly through cyber intrusions and cybertheft, in its attempts to acquire and absorb foreign technology, which further burden or restrict U.S. commerce.”

  • The report also stated that the tariffs “have had small negative effects on U.S. aggregate economic welfare, positive impacts on U.S. production,” a claim that would likely be debated by many businesses or industries.


In reaction to the report’s findings, the USTR has proposed changes that will introduce or increase Chinese tariffs in sectors at rates of 25%, 50% and 100%.

Sectors in which Chinese tariff increases will be put in place under the proposed modifications include but are not limited to:

  • Semi-conductors
  • EVs
  • Facemasks
  • Permanent magnets
  • Steel and aluminum products


A complete list of products that are subject to tariff increases under the proposed changes can be found in Annex A of the Federal Register’s notice.