Biden administration extends shredder wear parts tariff exclusion

The Office of the U.S. Trade Representative (USTR) recently released a notice in the Federal Register noting an extension of selected product exclusions from the China Section 301 tariffs for one additional year.

Commenting on the notice, the Washington-based Recycled Materials Association (ReMA), says this announcement includes the extension of the exclusion of shredder wear parts through May 31, 2025, “which is great news for ReMA members that operate shredders.”

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The USTR has extended the shredder wear parts exclusion multiple times over the last several years, most recently in December 2023 for five months through May 31 of this year. According to the USTR and ReMA, this new one-year extension of the exclusions pushes the decision about how to handle future extensions past the November elections.

As part of the broader statutory review process of the China Section 301 action, the USTR also is seeking feedback on a new proposed product exclusion process focused on machinery imported from China used in manufacturing under Chapters 84 and 85 of the Harmonized Tariff Schedule of the United States (HTSUS).

ReMA says its staff will review this new exclusion process and will consult with trade committee leadership about whether to file comments to the USTR during its public consultation period.

On May 14, President Joe Biden directed the USTR to add or increase tariffs on $18 billion in Chinese imports under Section 301 of the Trade Act of 1974, saying China’s unfair trade practices concerning technology transfer, intellectual property and innovation threaten American businesses and workers and flood global markets with artificially low-priced exports. The action followed the release of a USTR report on its Section 301 investigation.

The administration says China’s government has used “unfair, nonmarket practices” for too long, creating unacceptable risks to America’s supply chains and economic security. The action has targeted strategic sectors—such as steel and aluminum, semiconductors, electric vehicles, batteries, critical minerals and more—where the U.S. is making major investments.

In February, ReMA submitted comments to the USTR noting that foundries that produced most shredder wear parts left the U.S. primarily for China within the last 20 years and that earlier Section 301 tariff actions did not lead to the reshoring of manufacturing of those parts.