Section 301 Tariffs from EU – More Products Added to the Preliminary List
In April 2019, The Office of the United States Representative (USTR) announced a preliminary list of products that could be the target of Section 301 ad valorem tariffs of $11.5 billion worth of goods brought into the United States from member States of the European Union. The tariffs could reach up to 100% duty. The final decision and figure was said to be announced by a WTO arbitrator in the summer of 2019.
According to Sandler, Travis and Rosenberg, “The World Trade Organization’s Appellate Body ruled in May 2018 that the EU had failed to fully withdraw subsidized financing to Airbus previously found to be inconsistent with WTO rules and harmful to U.S. interests. Based on that decision the U.S. requested authority to impose countermeasures worth $11.2 billion per year. The EU challenged that figure and a final decision from a WTO arbitrator is expected this summer.”
The Original List
The preliminary list includes 317 tariff subheadings when imported from members of the 28 EU member states as well as 9 Harmonized Tariff Schedule statistical reporting numbers being considered for additional duties covering helicopters, aircraft and aircraft parts when imported from France, Germany, Spain, or the United Kingdom. The estimated import value of the goods on the preliminary list was approximately $21 billion in 2018. However, the final list will reflect only the amount of trade found to be adversely affected in the arbitrator’s decision. USTR states that retaliatory tariffs imposed on goods included in the final list will only be lifted “when the EU ends these harmful subsidies.”
More Products Added to the List
After the April notice, the Section 301 Committee held a public hearing in May and received testimony from over 40 individuals. Interested persons filed over 600 written submissions, including post-hearing comments.
A number of public comments submitted in response to the April notice requested that the U.S. Trade Representative consider additional products that were not included in the April 12 list for possible inclusion on the final list of products to be subject to additional duties.
As a result, USTR has now issued a supplemental list of 89 tariff lines that could be included in the additional tariffs up to 100%. These items include products such as ham, various cheese products, sausage, olives, fruits, coffee, pasta, whiskey, chemicals, copper and iron material.
Prepare to Submit Comments
USTR invites comments with respect to:
- the specific products in the additional list to be subject to increased duties;
- the level of the increase, if any, in the rate of duty; and
- whether increased duties on particular products on the additional list might have an adverse effect upon U.S. stakeholders, including small businesses and consumers.
To be assured of consideration, the following schedule applies:
July 24, 2019: Due date for submission of requests to appear at the public hearing and summary of testimony.
August 5, 2019: Due date for submission of written comments.
August 5, 2019: The Section 301 Committee will convene a public hearing in the Main Hearing Room of the
U.S. International Trade Commission
500 E Street SW
Washington DC 20436
@ 9:30 a.m.
August 12, 2019: Due date for submission of post-hearing rebuttal comments.
How to Submit Comments:
- Visit: Federal eRulemaking Portal
- Follow the instructions for submitting comments in sections D and E below.
- The docket number is USTR-2019-0003.
- For issues with on-line submissions, please contact the Office of the United States Trade Representative (USTR) Section 301 line at (202) 395-5725.
If your company is affected by these tariffs and you would like to speak to a Global Trade Expert, don’t hesitate to contact our team.