US considers extending tariff relief for Chinese medical gear used to fight Covid-19
- The tariff exemptions on the medical goods and personal protective equipment used to fight Covid-19 are set to expire on September 30
- No broader decision has yet been made about other tariffs imposed during the Trump administration
“With the recent spread of the Delta variant, COVID-19 cases in the United States are increasing again,” the notice says.
“In light of these changing circumstances, including the ability of the United States to obtain certain products domestically or from other sources, USTR is requesting public comments on whether to extend particular exclusions for COVID-19 products for up to six months,” it says.
The announcement comes as Washington and Beijing continue to clash on a range of fronts, including trade policy.
During the administration of former US President Donald Trump, the two countries heaped tariffs back and forth on billions of dollars’ worth of goods. Beyond the Covid-19 exemptions under consideration, the Biden administration has not yet announced whether it will keep the rest of the tariffs that Trump imposed on Chinese goods.
Biden’s top trade adviser, US Trade Representative Katherine Tai, has been vocal about what she describes as China’s “coercive and unfair trade practices”.
The tariff exemptions on the medical goods and personal protective equipment are set to expire on September 30. Trump put the exemptions in place after the pandemic began to spread wildly in the US.
Biden administration shrugs off pressure to remove China tariffs
The Biden administration has already extended the exemptions once.
“USTR will evaluate each exclusion on a case-by-case basis,” the notice says.
The notice says that the administration will not only look at whether the products from China are needed during the pandemic -- but also whether the tariff exclusions are helping the US achieve its broader goals related to China’s trade practices.
Wendy Cutler, a former acting deputy US trade representative, said that the announcement was “welcome,” but unsurprising.
“These products are part of the US commitment to tackle the Covid pandemic,” said Cutler, now vice-president and managing director at the Asia Society Policy Institute, a think tank in Washington.
“It makes absolutely no sense to increase the cost of these products through tariff application,” she said.
But she added: “It would have been more encouraging if USTR had also invited public comments on extending and improving the overall tariff exclusion process, which expired at the end of last year.”
Tai, the US trade representative, met virtually with China’s top trade official, Liu He, in late May, but there were no signs that the administration was close to a decision about what tariffs to keep in place.
“It’s unfortunate that the extension of overall tariff exclusion process, which can help shield American workers and companies from the damage certain tariffs have caused, is now on hold, caught up in the broader China policy review,” said Cutler.
