NMMA - National Marine Manufacturers Association Inc.
09/24/2024 | Press release | Distributed by Public on 09/23/2024 23:18
Biden Administration Increases Section 301 Tariffs on Certain Products from China
Last week, the Biden Administration announced it had finalized certain Section 301 tariff increases on imports from China. This has remained a top concern for the industry, and NMMA has joined other stakeholder groups calling upon the administration to take a more targeted approach towards its tariff-first trade policy.
In particular, the administration has imposed a new 25 percent tariff on steel and aluminum products coming in from China, which is set to go into effect on September 27. The administration placed a 25 percent tariff on lithium-ion non-electrical vehicle batteries, which would go into effect January 1, 2026. A complete list of the products and subsequent harmonized tariff schedule codes can be found here.
In May, the Biden administration announced proposed modifications to the Section 301 tariffs on imports from China; increasing tariffs on several sectors and establishing a new, very limited exclusion process for domestic machinery. The administration did not remove the current Section 301 tariffs - which impact more than 300 commonly used components, materials, and parts used in the marine manufacturing process.
NMMA submitted comments earlier this summer, requesting the Administration to take a more strategic approach, noting "[F]rom tariffs on raw materials and components, to retaliatory tariffs that froze the European Union from marine exports, the U.S. recreational boating industry has borne the brunt of tit-for-tat tariffs." Regarding the difficulty in reinventing supply chains, NMMA added that, "shifting supply chain networks cannot change at the drop of a hat, requiring companies, instead, to commit significant capital towards a complex and long-term process. The Section 301 tariffs continue hampering small domestic marine businesses as they are unable to find suitable alternative networks, especially for specialized products often found in the marine industry."
Since Section 301 tariffs on products from China were first imposed in 2019, the NMMA has urged the administration to reinstate all exclusions for marine products and reopen the exclusions process for every imported product currently impacted by Section 301 tariffs.
NMMA stands ready to help all stakeholders navigate the Section 301 process and provide updates as the administration's policy evolves. NMMA will continue advocating Congress and the administration to seek commonsense solutions towards a U.S.-China trade policy.
If your business has been impacted by Section 301 tariffs on products imported from China, please contact NMMA director of federal government relations, Clay Crabtree at [email protected].