NMMA Cautions Against Increasing and Expanding Section 301 Tariffs on Chinese Products
Yesterday, the administration formally announced that it will raise its 10 percent Section 301 tariff on $200 billion worth of Chinese goods (List 3) to 25 percent at 12:01am ET this Friday, following a setback in negotiations China. The official action came after President Trump’s decision earlier this week to increase the tariffs and initiate steps to impose a new 25 percent duty on another $325 billion in Chinese products (List 4) – moves that NMMA cautioned will have a negative impact on marine manufacturers.
In response, NMMA president, Thom Dammrich stated, "It's disappointing to watch the administration continue to use tariffs as a blunt negotiating tool, hurting the recreational boating industry and broad swaths of the U.S. economy. As we have said repeatedly, China must be held accountable for its unfair trade practices, which have put thousands of marine businesses at a competitive disadvantage. However, levying additional tariffs on the eve of negotiations – even with China’s backsliding on previously agreed upon issues – risks prolonging the global trade war.
"Regardless of any perceived negotiating leverage they may provide, tariffs are taxes paid by American families, workers, and businesses – China does not foot the bill. And for nearly a year, marine manufacturers have suffered from higher costs on hundreds of commonly used components, materials, and parts as a result of the administration’s Section 301 tariffs.
"In light of this development, members of Congress cannot remain passive bystanders. A commonsense place to start is passing legislation requiring a fair exclusion process for all products subjected to Section 301 tariffs, especially considering the administration has failed to establish one for $200 billion in goods currently facing tariffs.
“We urge President Trump to reconsider this action and instead focus on resolving existing tariffs and strike a long-term, enforceable deal.”
The full list of products on the third Section 301 list is available here. Items on this list that leave China before 12:01am ET on Friday will not be subject to the increase tariff.
While List 4 has not been officially posted yet, NMMA will continue to monitor the situation and pass along additional information when it is available. For more information, please contact NMMA senior vice president of government relations and legal affairs, Nicole Vasilaros at [email protected].