Section 301 of the Trade Act of 1974 delegates to the Office of the United States Trade Representative (USTR) authority to investigate and respond to unfair foreign trade practices that could harm domestic interests. Under Section 301, USTR can act against foreign countries that violate U.S. trade agreements or engage in acts that are “unjustifiable” or “unreasonable” and that burden U.S. commerce. Following a Section 301 investigation, USTR may impose new tariffs, withdraw or suspend trade agreement concessions, and negotiate binding agreements.

Since the law’s enactment in 1974, applications of Section 301 have evolved. There have been 130 cases under Section 301 so far. Of these 130 cases, 35 investigations were initiated after the establishment of the World Trade Organization (WTO) in 1995. The number of initiated cases under Section 301 significantly decreased following the implementation of the Dispute Settlement Understanding (DSU) at the WTO, which provided a formal, rule-based process for settling trade disputes. Since 1995, the U.S. has mainly enforced its trade rights through WTO DSU, rather than through a formal Section 301 investigation.

In 2017, the Trump administration broadened the use Section 301 by using Section 301 to impose tariffs on China. USTR initiated an investigation on China’s policies related to intellectual property, technology transfer, and innovation. Following the investigation’s conclusion in 2018, USTR imposed tariffs ranging from 7.5% to 25% on China across four lists, 1-4A. This subjected approximately 75% of Chinese imports (with a total value of over 370 billion) to Section 301 tariffs. Outside of China, the Trump administration also initiated Section 301 investigations against the EU, France, and Vietnam.

Countries can retaliate in response to USTR’s actions, such as by imposing retaliatory tariffs on U.S. exports. Although China has largely stood down in response to USTR’s actions, China issued a series of retaliatory tariffs on US exports in 2018 following USTR’s implementation of tariffs under Section 301. These retaliatory tariffs primarily targeted agricultural products.

Along with the new tariffs imposed on China, USTR opened an exclusion process in 2018, where exemptions were granted for specific import classifications under Section 301. USTR approved approximately 35% of initial exclusion requests from lists 1 and 2, 5% from list 3, and 7% from list 4A. In total, USTR granted over 2,200 initial exclusion requests, of which 549 were extended.

Until September 2024, the Biden administration largely maintained the Section 301 tariffs from the previous Trump administration. But in September 2024, USTR announced its final modifications on Section 301 tariff increases for Chinese imports during its statutory four-year review. The tariff hikes ranged from 25% and 100%, and impacted critical minerals, syringes and needles, electric vehicles, and solar panel cells. Many of these tariff increases went into effect in September, but some will go into effect in January 2025, such as tariff increases on semiconductors and rubber medical and surgical gloves. For more information on the USTR’s final modifications, read Crowell’s previous guidance here.

In December, USTR further modified tariff increases under Section 301 on Chinese-origin goods, announcing a 50% tariff increase on solar wafers and polysilicon and a 25% tariff increase on certain tungsten products. These tariff increases will go into effect in January 2025.

Moving forward, the use of Section 301 will likely be a key player in trade policy during the incoming Trump administration.

Crowell and Moring, LLP continues to monitor developments in the customs and trade remedies space, and their potential impact on businesses and customers going forward.

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Photo of Daniel Cannistra Daniel Cannistra

Dan Cannistra is a partner in the firm’s Washington, D.C. office. His practice focuses on legislative, executive and regulatory representation of domestic and international clients on a broad spectrum of international trade matters. Dan has represented domestic and foreign companies in over 75

Dan Cannistra is a partner in the firm’s Washington, D.C. office. His practice focuses on legislative, executive and regulatory representation of domestic and international clients on a broad spectrum of international trade matters. Dan has represented domestic and foreign companies in over 75 U.S. antidumping and countervailing duty cases before the U.S. Department of Commerce and the U.S. International Trade Commission under the Tariff Act of 1930. Many of these matters involved appeals to the U.S. Court of International Trade, the U.S. Court of Appeals for the Federal Circuit, binational panels under the North American Free Trade Agreement (NAFTA), and dispute settlement proceedings before the World Trade Organization (WTO). Dan has also represented clients in antidumping proceedings in the European Union, Canada, Mexico, Brazil, India, Thailand, Singapore, Guatemala and Taiwan.

Prior to joining Crowell & Moring, Dan was a director in a national accounting firm providing customs and international trade guidance to multinational clients related to the supply and distribution of goods and services across international borders. Areas of specialization included antidumping and countervailing duties and policy, trade remedies and litigation, free trade agreements and negotiations, classification and valuation, and international trade and development.

Dan’s government appointments include service to U.S. Trade Representative on the roster of international trade practitioners to resolve antidumping disputes involving NAFTA members. For the European Commission, Dan provided advice and training on international trade and antidumping methodology and practice. In addition, Dan has served as an international trade consultant to the governments of Guatemala and Singapore, providing technical advice to these governments on the application of international trade regulations consistent with international law and World Trade Organization agreements and the General Agreement on Tariffs and Trade, Agreement on Antidumping.

Photo of Jasmine Masri Jasmine Masri

Jasmine Masri is an associate in Crowell & Moring’s Government Contracts and International Trade groups. Jasmine focuses her practice on global compliance issues, regulatory enforcement matters, and government investigations. Through her practice, Jasmine provides counsel on a variety of matters at the intersection…

Jasmine Masri is an associate in Crowell & Moring’s Government Contracts and International Trade groups. Jasmine focuses her practice on global compliance issues, regulatory enforcement matters, and government investigations. Through her practice, Jasmine provides counsel on a variety of matters at the intersection of government contracts and international trade, including cross-border government procurement, economic sanctions, and export controls.

Photo of Emily Devereaux Emily Devereaux

Emily Devereaux is a senior international trade analyst I in Crowell & Moring’s Washington, D.C. office. She provides practice support to the International Trade Group on import regulatory matters pending before the Office of the U.S. Trade Representative (USTR) and U.S. Customs and

Emily Devereaux is a senior international trade analyst I in Crowell & Moring’s Washington, D.C. office. She provides practice support to the International Trade Group on import regulatory matters pending before the Office of the U.S. Trade Representative (USTR) and U.S. Customs and Border Protection (CBP). She works closely with attorneys developing courses of action for clients impacted by investigations under Section 301 of the Trade Act of 1974 and Section 232 of the Trade Expansion Act of 1962. She also supports unfair trade investigations, including antidumping (AD) and countervailing duty (CVD) investigations, sunset reviews, and changed circumstance reviews before the Department of Commerce and the International Trade Commission (ITC).

Photo of Ivy Xun Ivy Xun

Ivy Xun is an international trade analyst in Crowell & Moring’s Washington, D.C. office. She provides practice support to the International Trade Group on import regulatory matters pending before the Office of the U.S. Trade Representative and U.S. Customs and Border Protection. She…

Ivy Xun is an international trade analyst in Crowell & Moring’s Washington, D.C. office. She provides practice support to the International Trade Group on import regulatory matters pending before the Office of the U.S. Trade Representative and U.S. Customs and Border Protection. She works closely with attorneys developing courses of action for clients impacted by investigations under Section 301 of the Trade Act of 1974 and Section 232 of the Trade Expansion Act of 1962. Ivy also supports unfair trade investigations, including antidumping and countervailing duty investigations, sunset reviews, and changed circumstance reviews before the Department of Commerce and the International Trade Commission.