Court Signals China Tariffs Appear Illegal, Refunds Could Be Coming

Washington, D.C. (January 6, 2023): For three years, Customs & Border patrol has collected additional tariffs on Chinese-made products due to Section 301 Tariffs. At its peak, up to $300 billion dollars in Chinese imports were hit with 7%-25% in additional tariffs. A lawsuit was filed challenging the legality of the tariffs and USTR’s compliance with rules governing the exclusion review process. The Court of International Trade found the tariffs to be legal, but has indicated USTR did not comply with rules on exclusion reviews. If the final ruling goes against USTR, the government will likely appeal, but, if a decision holds, tariff refunds could be ordered.

Additional information on the status of this case and outlook can be found here.

SFIA was very pleased with the favorable comments from the courts on the lawsuit challenging the USTR compliance rules for the China tariff exclusion process. The legal proceedings will continue, and there could be a ruling this spring that USTR violated the exclusion rules and refunds ordered. Regardless of the decision, an appeal is expected, which would delay any refunds. SFIA supports the court challenge to the Section 301 Tariffs on Chinese-made goods and will report on any developments.

For more information or for questions, please contact Bill Sells, SVP, Government & Public Affairs, at [email protected].

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