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Section 301 Tariffs on Goods from China:
International and Domestic Legal Challenges
Updated July 22, 2021
In August 2017, the Office of the U.S. Trade Representative (USTR) initiated an investigation, under
Section 301 of the Trade Act of 1974, into several allegedly unreasonable or discriminatory trade
practices carried out by the People's Republic of China (China). On March 22, 2018, the Trump
Administration issued a report finding that several of these practices were unreasonable or discriminatory
and burdened U.S. commerce. Following this announcement, the Administration imposed additional
tariffs on a variety of imported goods from China. These tariffs, imposed in four stages between 2018 and
2019, have been challenged by China and numerous U.S.-based importers in international and domestic
legal fora. Although these legal challenges involve the Section 301 investigation and tariff actions
initiated by the Trump Administration, the Biden Administration has thus far signaled its intent to leave
the tariffs in place, and the related legal disputes remain ongoing. This Sidebar analyzes the litigation at
the World Trade Organization (WTO) and before the U.S. Court of International Trade (CIT).
Background
On August 24, 2017, USTR announced an investigation into whether acts, policies, and practices of the
Government of China related to technology transfer, intellectual property (IP), and innovation are
actionable under authorities delegated to the President in Sections 301 through 310 of the Trade Act of
1974 (often referred to as Section 301). On March 22, 2018, USTR issued a report finding that four
such Chinese practices or policies justified action under Section 301: (1) forced technology transfer
requirements; (2) cyber-enabled actions to acquire U.S. IP and trade secrets illegally; (3) discriminatory
and nonmarket licensing practices; and (4) state-funded strategic acquisition of U.S. assets. (For more
information on the Section 301 report and subsequent actions, see this CRS Report and In Focus.)
After USTR issued its report on the outcome of its Section 301 investigation, it determined that imposing
tariffs on approximately $50 billion worth of U.S. imports from China was an appropriate response. The
USTR also initiated a dispute at the WTO about China's technology licensing practices, although it was
suspended while the United States and China negotiated the Phase One trade agreement; since then,
authority for the WTO panel lapsed. On June 20, 2018, USTR issued a list of products covered by the first
round of tariffs (List 1), with an annual trade value of approximately $34 billion. The Notice of the action
indicated the U.S. Government reviewed the extent to which the tariff subheadings . . . include products
Congressional Research Service
https://crsreports.congress.gov
LSB10553
CRS Legal Sidebar
Prepared for Members and
Committees of Congress

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