Businesses worldwide are urging caution as the U.S. Trade Representative’s Office prepares for key hearings central to President Donald Trump’s renewed push for higher import taxes, an effort aimed at rebuilding a protectionist tariff wall.
Trump could implement the higher tariffs as early as July under Section 301 of the 1974 Trade Act, which allows the president to impose tariffs after investigating specific trade issues. The administration launched these investigations in March, with hearings set for May 5. A major concern for businesses is the possibility of exemptions. Section 301 has no established process for exclusions, but a recent Congressional Research Service report noted uncertainty about whether the Trade Representative’s Office “would establish a new exclusion process for current or future tariff actions.”
Businesses began submitting public comments last week ahead of the hearings.
Ford, of the nation’s largest auto makers, urged the Trade Representative’s Office to ensure that the new Section 301 tariffs do not add to the existing tariffs.
“Ford strongly supports USTR’s intention to ensure continuity between the tariff structure deployed under IEEPA and any new Section 301 tariff framework. This will ensure that any tariff remedy enacted as a result of these investigations is not placed upon vehicles with internal combustion engines and parts from China already subject to Section 232 auto tariffs,” Ford’s Chief Policy Officer and General Counsel Steven Croley wrote in a letter. “We ask that automakers be able to use our tariff offset credit for imported content subject to any new remedy implemented under Section 301.”
The National Corn Growers Association said that the administration must take steps to shield farmers from higher tariff costs.
“Farmers must have relief from additional cost pressures on inputs, which duty-free treatment for all categories of agricultural inputs would help alleviate. As the Administration pursues this Section 301 investigation in 60 countries, NCGA asks for Mexico and Canada to be exempted from this investigation, strong consideration to preserving and enhancing market access, and duty-free treatment for all inputs to prevent burdening farmers with even higher costs.”
