Most businesses probably would not have heard of the US Trade Act, that came into force in 1974. It's purpose especially in section 301 was to eliminate trade barriers opening the US to new export markets. This act came back into the limelight in 2018, when President Trump began to invoke it and impose tariffs against China during rounds of trade discussions. Basically it denied market access to US companies with President Trump implementing the first round of 15% tariffs on chinese goods entering the US.Then China retaliated with tariffs on U.S. products, the U.S. responded with further 25% tariffs.
At the start of 2020 the Trump administration negotiated what was referred to as a “phase one trade deal” with China. China agreed to escalate purchases of American goods, and each side agreed not to raise existing duties or impose new ones.
Now President Biden is in office their was a hope that a quick removal of chinese tariffs would be removed to facilitate trade. This was short lived as the Biden administration announced that the Section 301 tariffs are justified and no such action will be taken to remove them.
Much to the surprise and perhaps the dismay of many in the trade industry these restrictions strill apply, butatleast the Biden Trade Policy is similiar to the previous administration so that traders can have security and coherence that no changes will occur in the iminent future.,
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