The U.S. Trade Representative (USTR) announced that, in following presidential orders, additional measures are being considered under section 301 of the Trade Act of 1974 regarding “China’s unfair acts related to technology transfer, intellectual property, and innovation.”
According to the USTR release:
President Trump is proposing an appropriate response to China’s recent threat of new tariffs. After a detailed investigation, USTR found overwhelming evidence that China’s unreasonable actions are harming the U.S. economy. In the light of such evidence, the appropriate response from China should be to change its behavior, as China’s government has pledged to do many times. Economies around the world – including China’s own – would benefit if China would implement policies that truly reward hard work and innovation, rather than continuing its policies that distort the vital high-tech sector.
Unfortunately, China has chosen to respond thus far with threats to impose unjustified tariffs on billions of dollars in U.S. exports, including our agricultural products. Such measures would undoubtedly cause further harm to American workers, farmers, and businesses. Under these circumstances, the President is right to ask for additional appropriate action to obtain the elimination of the unfair acts, policies, and practices identified in USTR’s report.
Any additional tariffs proposed will be subject to a similar public comment process as the proposed tariffs previously announced. No tariffs will go into effect until the respective process is complete. Read TaxNewsFlash-Trade & Customs
For more information, contact a professional with KPMG’s Trade & Customs practice:
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