Three days of testimony conclude today for the Office of the U.S. Trade Representative’s (USTR) hearings on the Section 301 Tariff Investigation. The proposed tariffs are part of the U.S. response to China’s unfair trade practices related to technology transfer, intellectual property, and innovation based on the findings in USTR’s investigation of China under Section 301 of the Trade Act of 1974.
More than 100 trade groups and business leaders representing industries from all market sectors have begun pushing for exemptions and exclusions for their imported product.
According to published reports, the groups argue that the proposed tariffs would raise most Americans' cost of living and boost inflation. Others point to supply chain disruption. Retailers decide on vendors six to 12 months in advance and stores won't be able to cancel orders of Chinese goods faced with additional duties causing them to pass on additional cost to consumers.
Almost all business sectors could be impacted by additional tariffs. Products ranging from aerospace equipment to manufacturing components to medical supplies as well as textiles and apparel are currently at risk.
As the hearings conclude, post hearing rebuttal comments are due by May 22, 2018. Vandegrift will continue to keep you updated and provide new information as it becomes available.