THE REVIEW IS IN AND THE TARIFFS REMAIN by Omar Nashashibi, founding partner, The Franklin Partnership, LLC
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he Biden administration announced on Oct. 4, 2021, that the Office of the US Trade Representative (USTR) had completed its eight-month review of Washington’s trade policy toward Beijing. The review confirmed that the US will continue applying tariffs on imported Chinese goods and that USTR ambassador Katherine Tai believes the tariffs are an effective tool in the trade law arsenal.
After imposing the 25% and 7.5% tariffs on imports from China, former President Trump created an exclusion process for US companies to petition the government for a temporary suspension of the tariffs. It was this very process that lifted the 25% tariffs on Chinese plastic injection molds until AMBA and its members successfully lobbied to reinstate the restrictions on imports after demonstrating sufficient domestic capacity.
AMBA worked with policymakers in both parties in Washington, D.C. to help them understand the impact of imported Chinese dies and molds that Beijing and local governments continue to subsidize. The Biden administration came under intense pressure from US importers to lift the tariffs outright but faced opposition from domestic manufacturing groups. The current tariffs in place cover 66.4% of Chinese exports to the US.
As of this writing, the targeted list of eligible items does not include those molds previously granted an exclusion. Sources in Washington do indicate the USTR may consider expanding the list beyond those 549 items in the future, which means the threat to US mold and diemakers continues.
The USTR did, however, announce a limited tariff exclusion process for 549 identified imports from China, most of which expired in December 2020. If USTR aimed to please all sides, it certainly failed as importers only increased their calls on the Biden administration to expand beyond the targeted list and allow importers to request a tariff suspension on any Chinese goods. 40
the american MOLD BUILDER | Issue 4 2021
In another important victory for AMBA and American manufacturers, the USTR did agree to include a question suggested by the association of importers requesting to suspend the tariffs – what steps have they taken to source domestically? This is a step in the right direction and will help the AMBA defend the industry in the event molds and dies become eligible for an exclusion. In the review, the Biden administration went beyond simply continuing the tariffs and restarting a narrow exclusion
