June ’24 at-a-glance … taxes, tariffs & trade

USTR provides additional details on Section 301 tariff increases and exclusions 

Following its statutory four-year review of the Section 301 tariffs on imports from China, the U.S. Trade Representative (USTR) has clarified its proposed increases and exclusions for certain products in “strategic sectors.” These proposed charges are detailed in Annexes A, B and C in USTR’s announcement. Comments on the proposal are due June 28, although NAFEM and other members of Americans for Free Trade have requested an extension to this deadline. In all cases, members should review the HTSUS codes included in the announcement. 

Annex A primarily addresses increased tariffs on battery parts (25%), electric vehicles (100%), other EV batteries (25%), semiconductors (50%), ship-to-shore cranes (25%) and steel and aluminum products (25%). Annex B proposes a temporary exclusion process for particular machinery used in domestic manufacturing. Annex C proposes temporary product exclusions for certain solar manufacturing equipment.  

NAFEM advocates to repeal Corporate Transparency Act 

Small Business Legislative Council members, including NAFEM, met with congressional offices and committee staff to ask them to repeal the onerous Corporate Transparency Act. The Act requires all businesses with 20 or fewer employees and $5 million or less in revenue – in other words, every small business in the U.S. – to report beneficial ownership annually or pay a $500/day fine. Companies in existence Jan. 1, must begin reporting Jan. 1, 2025.  

Watch for an opportunity from NAFEM’s Advocacy Action Center to reach out to your congressional representatives to encourage them to repeal the Act.