July ’24 at-a-glance … taxes, tariffs & trade

NAFEM comments on proposed increases to Section 301 tariffs 

NAFEM has once again requested that the U.S. Trade Representative (USTR) reconsider its approach to the Section 301 tariffs on goods imported from China. In comments submitted in late June, NAFEM questioned the effectiveness of proposed modifications introduced after USTR’s statutory four-year review and cited the negative effects of the tariffs on the U.S. economy and consumers.  

These proposed charges in “strategic sectors” are detailed in Annexes A, B and C in USTR’s announcement. 

Annex A primarily addresses increased tariffs on battery parts (25%), electric vehicles (100%), other EV batteries (25%), semiconductors (50%), ship-to-shore cranes (25%) and steel and aluminum products (25%). Annex B proposes a temporary exclusion process for particular machinery used in domestic manufacturing. Annex C proposes temporary product exclusions for certain solar manufacturing equipment.  

Steel/aluminum tariffs increase Aug. 1 

Immediately following the publication of the USTR statutory four-year review of the Section 301 tariffs on imports from China, the administration increased tariffs on $18 billion of steel and aluminum products to 25%. These new tariffs take effect Aug. 1 and are on top of the current “national security“ tariffs of 25% on steel and 10% on aluminum. Most of the impacted imports appear to be bars, rods and wire, not products made with steel and aluminum. Members should check their HTS codes for clarity.  

U.S. steel producers want tighter controls on imported products 

The American Iron and Steel Institute is calling for tighter rules of origin on steel products to ensure those products made with Chinese steel and processed in other countries are charged applicable duties. Section 301 tariffs should apply to all steel products where the original raw steel was melted, regardless of the country of final processing. 

Homeland Security focuses on aluminum from Uyghur region 

The Department of Homeland Security (DHS) updated its Uyghur Forced Labor Strategy to prioritize reviews of the aluminum, polyvinyl chloride and seafood sectors. The Xinjiang region, known for human rights abuses, produces 9 – 12% of the world’s aluminum supply and more than 15% of China’s aluminum.  

NAFEM advocates to repeal Corporate Transparency Act 

Members can voice their opposition to the burdensome Corporate Transparency Act (CTA) through the Advocacy Action Center. H.R. 8147 and S. 4297 would repeal the Act that requires small businesses to report beneficial ownership before Jan. 1, 2025, or face penalties of $500/day. Multiple lawsuits also have been filed against the law. NAFEM is advocating for repeal of the Act with congressional offices and committee staff.