News
The Office of the U.S. Trade Representative (USTR) has completed an investigation into China’s acts, policies and practices related to technology transfer, intellectual property and innovation (section 301 investigation).
In a White House memorandum, President Joe Biden noted that, while imposing tariffs under section 310 of the Trade Act “has been effective in encouraging China to take positive steps in addressing the issues identified in the section 301 investigation, such as certain revisions in its foreign investment and administrative licensing laws, China’s actions do not represent a systematic and sustained response to the issues raised in the section 301 investigation.” The Biden Administration has, therefore, determined that “additional section 301 tariffs would provide incentives for China to eliminate the acts, policies and practices at issue.”
Included in a raft of new tariffs is a new 25% tariff on ship-to-shore (STS) cranes from China in 2024. Previously there were no tariffs on STS cranes manufactured in China. It will have a significant impact on U.S. ports and terminal operators. It is not just Shanghai Zhenhua Heavy Industries (ZPMC) that will be affected. Konecranes is also building STS cranes in China for the Georgia Ports Authority, and these appear to be included under the new tariff. Tariffs are normally payable at the point when goods enter the U.S., regardless of when they were ordered or manufactured.
The new tariff on STS cranes, however, is not about protecting domestic industry. The USTR report into China and section 301 of the Trade Act published this month notes: “With respect to STS cranes, increasing section 301 duties may be appropriate to support the security interests of the United States from the threat of Chinese state-sponsored cyber intrusions of critical infrastructure.”
