China suspends Section 301 tariff exclusion for U.S. agricultural products

In the latest development in the U.S.-China tariff saga, the Asian giant has reportedly suspended the Section 301 tariff exclusion on U.S. agricultural product imports. 

While the Chinese government has yet to issue an official statement, Chinese importers have reported to the USDA’s Foreign Agricultural Service that applications for the market-based tariff exclusion will no longer be accepted starting August 1. This includes products like grains, tree nuts, alcohol, leather, and hides, as well as fruits. Importers also reported that all previously approved exclusions will be valid only until September 14.

The affected products were previously eligible for tariff exclusions under a process established in March 2020 by the State Council Tariff Commission of China, which allowed importers to apply for waivers from retaliatory Section 301 tariffs on certain U.S. products. Although the process allowed some items outside the predefined list, it covered 696 tariff lines, of which around 150 applied to agricultural products.

Related articles:

China's retaliatory tariffs are affecting Canada's agricultural and seafood products

U.S. and China roll back on tariffs for 90 days

U.S. and China reach trade deal, easing restrictions