Section 301 tariffs on Chinese goods will officially remain in place. Following a summer of uncertainty, American shippers will continue to pay more to import products from China.

The United States Trade Representative (USTR) announced last week that Trump-era Section 301 tariffs would remain a part of the supply chain landscape. A mandatory review process opened the door for these duties to expire. While some supply chain operators hoped for just that, others claimed that the tariffs are helpful to certain American industries.

Four years after their implementation, the USTR conducted a mandatory review of the duties and their effectiveness in achieving intended goals; namely, combatting the trade deficit with China and penalizing the state’s leniency with foreign intellectual property rights. During the review, American industry representatives who benefit from the Section 301 tariffs could request they remain. The duties would only expire if the USTR received no such requests.

It comes as little surprise then that the duties will stay. The USTR received requests for continuation – the previous four years’ status quo of higher import costs from China will continue.

No drastic changes are expected yet for duty payments on Chinese imports. However, the USTR is currently moving into the final phase of its review of the individual tariffs. This could yield some updates depending on the USTR’s findings. Scarbrough will pass on this information as it becomes available. Stay in touch with your Scarbrough representatives for further updates and assistance with Section 301 tariffs.