U.S. To Make Changes To Additional Section 301 Tariffs On Certain EU Goods, Including Large Civil Aircraft

 On October 2, 2019, the World Trade Organization (WTO) authorized the U.S. to impose additional tariffs on approximately $7.5 billion worth of goods originating in the European Union (EU) as a result of the long-running trade dispute over the subsidies the EU provided to Airbus.  Following the WTO ruling, the U.S. imposed additional duties of 10 percent on certain large civil aircraft imported from France, Germany, Spain, or the United Kingdom, as well as additional tariffs of 25 percent on a broad range of merchandise, including agricultural products such as olives, wines, and cheeses from EU member states.  These additional tariffs under Section 301 of the Trade Act of 1974 went into effect on October 18, 2019.  Note that these Section 301 duties are in addition to the Normal Trade Relations duties, as well as antidumping and countervailing duties.
The Office of the U.S. Trade Representative (USTR), as part of its statutorily-mandated periodic review of these tariffs, published a notice of modification on February 14, 2020.  This notice increased the Section 301 tariffs on EU aircraft and made certain other minor modifications as follows:

  • Effective March 18, 2020, the Section 301 duty rate on certain large civil aircraft from France, Germany, Spain, or the United Kingdom will increase from 10 percent to 15 percent.
  • Effective March 5, 2020, prune juice (concentrated or not concentrated) from EU countries will no longer be subject to the 25-percent Section 301 tariff.
  • Effective March 5, 2020, butchers' or kitchen chopping or mincing knives (other than cleavers with their handles) from France and Germany will be subject to the 25-percent Section 301 tariff.

The published USTR notice can be read here.  For more information, please contact a BDO Customs and International Trade Services professional.