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USTR expected to finalize Section 301 tariff updates soon

The Office of the U.S. Trade Representative is finalizing modifications on tariffs for imported Chinese goods and trade policy specialist says she’s expecting to hear more soon.

Virginia Houston with the American Soybean Association says she’s optimistic China won’t retaliate on U.S. ag products.

“Of course we’re always concerned when tariffs are in play, just because we’ve seen how detrimental the impact can be for our exports. But one thing we’ve communicated closely to the administration, outside of the need for a tariff removal, is the hope the tariffs, if they choose to implement them, are targeted and don’t trigger Chinese retaliation on ag.”

Earlier this year, the Biden administration said it would expand Section 301 tariffs on imports from China like solar panels, electric vehicles, steel and aluminum products and more while continuing current tariffs. The USTR took comments on the modifications and is expected to announce how they’re moving forward in August, with any modifications for 2024 taking effect two weeks after the announcement is made. Other import tariffs are expected to phase in gradually over the next two years. 

Houston says former President Donald Trump used Section 301 tariffs on Chinese imports and in turn, China retaliated on U.S. ag products with U.S. soybeans among the first hit with a 25% tariff, reaching 30% at the height of the trade war.

Since the phase one agreement with China was signed, Houston says there’s been a 3% tariff on U.S. soybeans coming into China.

While China has slowed some of its purchases of U.S. soybeans in the new crop marketing year, she says the country is still the largest customer for U.S. soybeans.

“Additional tariffs could lead them to be more dependent on old crop soybeans from Brazil or Argentina and look for ways to move away from U.S. soy.”

The U.S. soybean markets are relying on export demand this year due to an expected large U.S. soybean crop.

Houston is also one of several professionals recently appointed to serve as an ag trade advisor with the USDA and the Office of the U.S. Trade Representative. She will serve in that role through 2028.