Potential Tariffs on Apparel, Footwear, Electronics, and Home Goods from China

The Trump Administration is planning on dusting off another infrequently used provision of the trade laws, Section 301 of the Trade Act of 1974, to impose additional tariffs on apparel, footwear, electronics, and home goods manufactured in China and imported into the U.S. The potential tariffs could reach between $30-$60 billion per year. The Trump Administration announced its proposed Section 301 tariffs as a response to China’s improper transfer of technology and failure to protect U.S. intellectual property rights. Many industries are concerned about the potential added costs such tariffs represent and are organizing to oppose them.

Commerce Secretary Wilbur Ross and U.S. Trade Representative Robert Lighthizer are expected to testify before Congressional committees Wednesday and Thursday. Additional information is expected to be released later in the week, including the list of covered products, proposed tariff rates, and the implementation date. As with the recent Section 232 tariffs on steel and aluminum products, there is speculation that the Administration may include an exclusion process to remove specific products from the list of affected products. It is also thought that there may be an opportunity for public comment opposing or supporting the proposal. This blog will be updated as new information is released by the Trump Administration.