On June 23, 2020, the U.S. Trade Representative (USTR) announced potential modifications to the existing European Union (E.U.) Section 301 additional duties currently imposed at 15% and 25% on certain E.U. products. The existing duties went into effect on October 18, 2019. 84 Fed. Reg. 54245 (Oct. 9, 2019). These E.U. Section 301 duties are retaliation for the E.U.’s unfair subsidization of large civil aircraft.
In addition to the products already subject to the duties, the USTR has identified more products valued at approximately $3.1 billion that may be subject to Section 301 duty rates up to 100%. The products include certain France, Germany, Spain, or United Kingdom-origin olives, beer, liquor, trucks (HTS subheading 8427.10.80 and 8427.90.00), hand tool parts, water heaters, and machinery for lifting, handling, loading or unloading.
The USTR seeks comment on the proposed list of additional products and the duty rate imposed on these products. Further, the USTR seeks comment on whether products currently subject to the EU Section 301 duty rates of 15% or 25% should remain on the list or whether those duty rates should be increased. Interested parties may file comments from June 26, 2020 until July 26, 2020.