Recent Trade & Tariff Perspectives

July 13, 2022  |  Anahi Czeszewski  Product Development Manager

Copy to clipboard

Tariffs, Tariffs, and More Tariffs

It’s clear all the hot topics that continue to linger in the trade community have an overarching theme—tariffs. Whether it’s the additional duties announced on certain products imported from Russia, the elimination of the Section 201 safeguards on solar panels from Canada, or the possible changes that may soon be announced regarding Section 301 China tariffs—these developments warrant a closer review. Read on to understand the effects these changes can have on your supply chain and identify the steps you should take now to mitigate risk and maximize cost-savings opportunities.

Increase in duties on certain articles from Russia

A recent presidential proclamation announced that effective July 27, 2022, more than 570 product groups imported from Russia will be subject to an increase in duty rates to 35 percent under column 2 duty rates of the Harmonized Tariff Schedule of the United States (HTSUS). Such products are located in the associated Federal Register Notice, and cover a wide range of product groups, including:

• Aircraft and parts
• Arms and ammunition
• Automotive parts
• Chemicals
• Minerals, ores, and metals
• Steel and aluminum
• Wood and paper products

If you import from Russia, review this product list today to identify whether this latest action will impact your total landed cost.

Section 201 safeguard tariffs on Canadian solar products eliminated

Following the Office of the United States Trade Representative (USTR) negotiations with Canada to settle a dispute on trade in solar products, the USTR recently announced it would eliminate the Section 201 safeguard tariffs on solar panels from its neighboring ally.

In their memorandum of understanding (MOU), the United States and Canada commit to promoting, “greater North American solar supply integration and reaffirms both countries’ commitment to prohibit imports of solar products produced in whole or in part with forced or compulsory labor.” The MOU further prioritizes the United States’ priority in, “tackling the climate crisis” together with its closest allies and, “foster a more resilient North American supply chain for clean energy products made without forced labor.”

Potential for the Biden Administration to lift narrow set of Section 301 China tariffs

According to recent conversations with White House administration officials, there have been active discussions around the topic of potentially lifting Section 301 China tariffs on a narrow set of affected products in hopes of combating historically high inflation rates. Products under consideration appear to be narrow in scope—likely consumer goods products, according to sources. Though no timeline regarding a final decision has been made, according to officials close to the White House, President Biden is expected to make a decision this month.

We understand many industries continue to be in opposition of the Section 301 tariffs, while many industries are adamantly in favor of the additional trade remedies. Additionally, a common theme amongst many industries is the continuous push to level the playing field for manufacturers in the United States, allowing for fair competition.

USTR initiates a statutory review of all Section 301 China tariff lists

Be aware the USTR has also recently announced it would be conducting a statutory review of all Section 301 tariff lists leading up to the four-year anniversary of the Section 301 China tariff actions. The comment period closed on July 6, 2022, for the first list (tranche), but know there is still time for representatives of domestic industries to submit comments for the additional lists.

USTR could potentially announce a new Section 301 exclusion process

Furthermore, we may also soon be seeing a USTR announcement that will open a new Section 301 exclusion process, according to inside officials. This announcement would allow companies to submit public comments in hopes of eliminating the Section 301 additional tariffs on specific products. The most recent exclusions the USTR announced were published in May, and included the reinstatement of more than 350 previously expired Section 301 China tariff exclusions.

Uncover your duty minimization opportunities

C.H. Robinson’s U.S. Tariff search tool allows you to easily identify potential duty minimization opportunities by using the 10-digit tariff classification codes for your imported commodities, as queried directly from both the United States International Trade Commission (USITC) and all duty exclusion notices published by USTR.

Labor is challenging to come by these days, and tools like this can save hours of research time, providing clarity in a very complex environment. Leverage this tool today to take advantage of the latest exclusions eligible to you today—proactivity prevails in this seemingly ever evolving trade climate. Learn how to use the U.S. Tariff search tool.

Stay informed on developments

C.H. Robinson continues to closely monitor all the latest developments. Subscribe to our Client Advisories and Trade and Tariff Insights to be notified when changes take place. Connect with one of our trade policy experts to learn even more.

Resources

• Proclamation on Increasing Duties on Certain Articles from the Russian Federation | The White House
• Increasing Duties on Certain Articles From the Russian Federation
• United States and Canada Announce a Memorandum of Understanding on Trade in Solar Products | United States Trade Representative (ustr.gov)
• Recent Trade & Tariff Perspectives | U.S. Trade Representative to Review All Section 301 Tranches: What You Should Know (chrobinson.com)
• Recent Trade & Tariff Perspectives | Certain Section 301 China Duty Exclusions Retroactively Reinstated—Now What? (chrobinson.com)
• U.S. Tariff Search Tool | C.H. Robinson (chrobinson.com)
• Importing into the U.S.? Break down the complexity of your landed cost analysis

Our information is compiled from a number of sources that to the best of our knowledge are accurate and correct. It is always the intent of our company to present accurate information. C.H. Robinson accepts no liability or responsibility for the information published herein.