Potential Relief from China Tariffs Coming
Co-Authored by Sharath Patil
Background on Section 301 Tariffs
A key element of the U.S.-China trade war, initiated under the Trump administration and continuing through Biden’s first term, was the imposition of China tariffs under Section 301. Section 301 is a mechanism via which the President can retaliate against foreign countries that violate U.S. trade agreements or engage in acts that are “unjustifiable” or “unreasonable” and burden U.S. commerce. With regard to China, the U.S. Trade Representative (“USTR”) found that China’s acts, policies, and practices related to intellectual property and innovation are unreasonable or discriminatory and burden or restrict U.S. commerce. Accordingly, a broad set of tariffs were instituted. Section 301 tariffs for goods originating from China have been so expansive that U.S. Customs revenue has nearly doubled from $41.6 billion in FY 2018 to $71.9 billion in FY 2019 and $74.4 billion in FY 2020.
Diaz Trade Law 
The U.S. Food and Drug Administration (FDA) is in full enforcement mode issuing 260 warning letters in 2021 alone! Now is the time to ensure your products are in compliance with the Federal Food, Drug, and Cosmetic Act (the Act) prior to importation. Manufacturers, importers, distributors, and others engaged in the production or sale of over the counter (OTC) drugs or cosmetic products must be aware of FDA’s various enforcement mechanisms, and more importantly, how to avoid and/or mitigate such actions. FDA’s most common enforcement activities include notices of FDA action, warning letters, seizures, voluntary recalls, injunctions, and criminal prosecution.
