May 14, 2024

Law360 Quotes Ashley Craig on the Effectiveness of New Tariffs

2 min

On May 14, 2024, Law360 quoted Ashley Craig on the effectiveness and consequences of new tariffs placed on Chinese products, including electric vehicles, semiconductors, and solar cells, to protect domestic industries.

This week the Biden administration announced the completion of its review of China's trade practices under Section 301 of the Trade Act of 1974. The announcement maintains current tariffs on Chinese imports and includes plans to impose new tariffs on a range of Chinese products.

According to the article, trade policy experts are skeptical that new tariffs on $18 billion worth of Chinese goods alone can convince Beijing to drop practices that Washington deems unfair, when the 2018 imposition of tariffs on $300 billion worth of Chinese goods failed to bring about the desired change.

In response to the tariff announcement, Craig described the Section 301 action as "surgically crafted" to make Biden look tough on China by putting his own mark on the Trump-created tariff program, while minimizing negative effects on U.S. consumers, at least for now. "What China does in response is going to be, I think, the most interesting aspect of today's developments," said Craig.

When China responds, U.S. agriculture exports are likely to take the hit, according to Craig. China responded to the initial rounds of Section 301 tariffs in 2018 with its own levies on U.S. consumer goods and agriculture products, including pork and soybeans.

"It could also help put pressure on the administration in terms of its campaign for reelection because the Trump team will call out if, in fact, the Midwest does get hit," said Craig.

To access the article click here.