MRC Global InSight

Section 301

In August 2017, U.S. President Trump initiated an investigation pursuant to Section 301 of the Trade Act of 1974 to determine whether the government of China’s acts, policies and practices related to technology, transfer of intellectual property and innovation are unreasonable and burden or restrict U.S. commerce. That investigation, commonly referred to as Section 301, ultimately resulted in significant tariffs being placed on many Chinese products that are part of the PVF supply chain.

These tariffs are identified by HTS (Harmonized Tariff) Codes, and have been split out into three lists of products, which are detailed below. Most recently, List 3 tariffs (10%) take effect on $200 B of Chinese products. This means all valves (gate, globe, ball, butterfly, etc.) from China other than check valves, safety relief valves, and pressure relief valves will receive an extra 10% tariff, after they already received a 25% tariff when List #1 went into effect July 6, 2018. If there is no progress with the China on trade by the end of the year, then the List #3 items will receive an additional 15% (in addition to the original 10% tariff).