Section 301 a tool to target China
The Joe Biden administration imposed punitive tariffs on Chinese-made electric vehicles, solar photovoltaic panels, EV batteries, steel, aluminum and medical equipment on Tuesday. Following a four-year review under Section 301 of the US Trade Act of 1974, the tariff on EVs imported from China will be raised from 27.5 percent to 102.5 percent.
The US administration is supposed to use Section 301 to take "corrective" action against trade practices it deems unfair or those that violate international trade rules.
But now the United States is using Section 301 as a weapon to check the development of China's industries. In fact, China needs to prepare for another round of investigations under Section 301 targeting its maritime trade, and logistics and shipbuilding sectors, which were initiated in April in response to a petition filed by five leading US national labor unions on March 12.