On May 29, President Trump announced that the Administration intends to move ahead with its plan to impose tariffs under Section 301 of the Trade Act of 1974 on a wide range of imports from China. Although Treasury Secretary Steven Mnuchin indicated last week that the Administration might place the tariffs on hold, President Trump’s May 29th announcement indicates the Administration does not intend to delay the tariffs much longer.

On March 22, 2018, President Trump directed the Administration to take action against China’s "unfair and harmful acquisition of U.S. technology." The President instructed U.S. Trade Representative Robert Lighthizer to propose additional tariffs on a range of products benefiting from China’s industrial policies.

Accordingly, on April 3, 2018, USTR released a list of imports from China that were proposed to be subject to an additional tariff of 25%. The total value of the covered imports was estimated to be $50 billion annually. The list of covered products includes aerospace, telecommunication, food and drug, medical device, chemicals, metals, transportation, and electronics products. In the April 3rd announcement, USTR provided an opportunity for members of the public to file comments on the list, stating that they could request products be removed from or added to the list. The USTR held three days on the proposed tariffs, which took place on May 15, 16, and 17, 2018.

In his May 29th announcement, President Trump has indicated that, as of now, United States intends to impose the proposed 25% tariff on the products set forth in USTR’s April 3rd list. In that announcement, The President stated that:

• The United States "will implement specific investment restrictions and enhanced export controls for Chinese persons and entities related to the acquisition of industrially significant technology." These restrictions and controls will be announced by June 30, 2018.

• The United States will continue to litigate its case against China at the World Trade Organization. The case alleges that China has violated the Agreement on Trade-Related Aspects of Intellectual Property Rights.

• The United States will impose a 25% tariff on $50 billion of goods imported from China containing industrially significant technology. The final list of impacted imports "will be announced by June 15, 2018, and tariffs will be imposed on those imports shortly thereafter."

In response, China announced that it will impose a 25% tariff on a list of imports from the United States, should the U.S. tariffs take effect. The list of products subject to these retaliatory tariffs include agricultural products (such as soybeans, corn, wheat, beef, and tobacco), bourbon, automobiles and other vehicles, chemicals and plastics products, and aircraft, among other things.

In response to China’s action, President Trump has threatened to impose tariffs on an additional $100 billion of goods imported from China. The Administration plans to continue trade talks with China, however, stating that it "looks forward to resolving long-standing structural issues and expanding our exports by eliminating China’s severe import restrictions." Secretary of Commerce Wilbur Ross is scheduled to travel to China to continue trade talks at the end of this week.