The U.S. Trade Representative (USTR) has announced final modifications to the Section 301 tariffs on China, which were originally implemented to counter China’s unfair trade practices related to technology transfer, intellectual property, and innovation.
Following a review of over 1,100 public comments, the modifications largely align with those proposed in May 2024.
Key changes include adjustments to tariffs on medical supplies, additional exclusions for certain machinery, and new proposals for materials like tungsten and polysilicon.
Despite some reforms by China, the USTR concludes that China's harmful practices, such as forced technology transfer and cyber theft, persist and, in some cases, have worsened. The tariff actions have led to a decrease in U.S. reliance on Chinese imports, supported supply chain diversification, and had mixed economic impacts.
The USTR plans to launch a machinery exclusions process and gather further input on proposed tariff adjustments.