Proposed Tranche 4 of Section 301 Tariffs Would Leave Few Subheadings Untouched

Only 453 8-digit Harmonized Tariff Schedule subheadings would not be covered by Section 301 tariffs on products from China, should the duties be imposed on the proposed fourth tranche of goods without any changes from the Office of the U.S. Trade Representative’s list. That’s only about 4 percent of the over 11,000 8-digit subheadings in the HTS, with the remainder being subject to tariffs of up to 25 percent.

The USTR noted (see 1905130063) that its proposal is to include nearly all goods so far untouched by tariffs, except for "pharmaceuticals, certain chemicals made into prescription drugs, rare earth minerals and critical minerals," though some goods that aren't on any list don't seem to fall into those categories. For example, "Sheath contraceptives of vulcanized rubber" in subheading 4014.10.00 and "Modeling pastes, including those put up for children's amusement" in subheading 3407.00.20 continue to escape Section 301 tariffs. Also unmentioned are massaging devices in subheading 9019.10.2020.

Currently there are 6,864 8-digit subheadings covered by tranches one, two and three of the tariffs, which took effect in 2018 and after June 1 will be at 25 percent across the board. USTR’s proposed tranche four would cover an additional 3,794 8-digit subheadings, and eliminate several 10-digit carveouts set in the third list of tariffs set in September 2018 for subheadings 2931.90.9051, 8517.62.0090, 9401.61.4001, 9401.69.6001, 9401.71.0001, 9401.71.0005, 9401.71.0006, 9401.71.0007, 9401.79.0001, 9401.79.0002, 9401.79.0003, 9401.79.0004, 9401.80.2001, 9401.80.4001, 9401.80.6021, 9401.80.6023, 9403.70.4003 and 9403.70.8003.

Chemicals and pharmaceuticals of chapters 28, 29 and 30 feature most prominently on the list of goods that would not be covered by any Section 301 tariffs if tranche four takes effect unchanged. A total of 316 8-digit subheadings out of the 453 not covered by tariffs already implemented or proposed fall into that category. Medical products in general are some of the few products that would still be untouched by the tariffs, including some medical devices of heading 9018, and other medical products such as surgical gloves and hosiery.

The following table lists the 8-digit HTS subheadings that are not covered by the already implemented tranches one, two and three of the Section 301 tariffs, and not listed by USTR in the proposed tranche four:

(NOTE: Some products not on this list may also not be subject to Section 301 duties as a result of one-year product exclusions announced by USTR):