In 2018, following a Section 301 investigation into China’s trade practices regarding forced technology transfer and intellectual property rights protection, the Trump Administration imposed a tariff on several Chinese imports, which representatives from various industries including the footwear and fashion sector, say have forced US business to pay taxes to import Chinese goods and products, which ultimately result in higher prices for US consumers.
In September 2020, more than 6,000 plaintiffs filed lawsuits challenging the List 3 and List 4A tariffs as unlawful under Section 301 of the Trade Act of 1974 arguing that the USTR exceeded its authority when it imposed tariffs without attempting to connect them to any underlying investigation of China’s trade practices.
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The amicus brief highlights USTR’s violation of its statutory obligations under the Administrative Procedure Act by failing to give adequate opportunity for, or consideration of, public comments.
According to the amicus brief: “Those proposed tariffs implicated hundreds of billions of dollars of imports and impacted almost every facet of the US economy. Many stakeholders, including amici’s members must plan out their international supply chains and delivery schedules months in advance. Not surprisingly, these businesses needed time to review the hundreds of thousands of products they sell to evaluate the availability and feasibility of alternative non-Chinese sources and to assess impacts on supply chains and retail operations.”
“If USTR had satisfied its obligation to allow for meaningful comments from amici and others and had actually considered them, it would have recognized the considerable harm its actions would inflict. The tariffs are a hidden tax on U.S. consumers, hurting domestic producers, retailers, and customers alike. And, as predicted, they have had a significant adverse impact on the U.S. economy.”
The USTR did not return a request for comment.
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By GlobalDataEarlier this week the US apparel industry, along with other sectors, called upon President Joe Biden to restart negotiations with China and cut tariffs on imports they say are hurting the US economy and consumers.
