The United States Trade Representative (USTR), under Section 301 of the Trade Act of 1974, is authorized to act against foreign countries that engage in unfair trade practices, including violations of trade agreements, discriminatory policies, or actions that burden or restrict U.S. commerce. While recent Section 301 actions have focused primarily on Chinese-origin goods, this provision is not limited to China. It can be applied to any country whose practices are determined to be unjustifiable, unreasonable, or discriminatory.
In the past, Section 301 has been used to address trade issues with countries such as Japan, Canada, Mexico, the European Union and India. Its scope allows the U.S. to impose tariffs or take other remedial measures against a wide range of trade violations, not just those related to intellectual property or technology transfer.
China-Specific Exclusions and Impacts on Construction
In 2018, the U.S. initiated a major Section 301 investigation into China’s policies and practices related to technology transfer, intellectual property and industrial subsidies. As a result, tariffs were imposed on hundreds of billions of dollars in imports from China. Many of these products directly impact the construction and finishing industries.
Over the past several years, the USTR has implemented a product exclusion process allowing businesses to request exemptions from these tariffs for specific items. FCA contractors that rely on imported materials have a vested interest in understanding and utilizing this process.
Examples of Granted Exclusions
Products that have received exclusions under Section 301 include:
- Luxury vinyl tile and other flooring products
- Quartz slabs and stone surfacing
- Plastic wall panels and insulation materials
- Fasteners, bolts, and specialized anchors
- HVAC components and electrical fixtures
- Solar installation hardware and mounts
These exclusions have helped mitigate cost increases and supply disruptions for U.S. contractors and manufacturers, especially when domestic alternatives were unavailable or economically unfeasible.
Section 301: A Tool Beyond China
While current attention has centered on China, contractors should understand that Section 301 is a global enforcement mechanism. Should the U.S. government apply Section 301 measures to products from other nations in the future—such as tariffs arising from disputes over digital services, environmental policies, or industrial subsidies—the same exclusion process would be available.
Next Steps for Contractors
Contractors who import materials subject to current or future tariffs are encouraged to contact FCA. We can help determine if exclusions are appropriate and assist in navigating the filing process efficiently and effectively.
Free Tariff Risk Assessment from Document Crunch
FCA’s Supporting Partner, Document Crunch, is offering free tariff risk assessments for FCA contractors. These assessments can help you quickly identify tariff-related risks in your contracts and protect your projects from unexpected cost increases. Click here to learn more.
Bottom Line
FCA International is here to protect our contractors from undue cost burdens caused by global trade enforcement actions. By leveraging the Section 301 exclusion process, we can maintain competitiveness and cost-efficiency across our industry, today and into the future.
FCA will be addressing these exclusions at our next committee meetings. Contact us if you’re interested in joining FCA’s trade committees.