In addition to Section 232, the U.S. has implemented tariffs on a wide variety of Chinese products of specific concern to the valve industry under the Administration’s Section 301 action against China’s intellectual property violations. Currently, more than two dozen valve products either imported from or exported to China are subject to these tariffs, which range from 5−25%. In addition to tariff lines that specifically reference valves, many other products from China that are used in making valves also are subject to Section 301 tariffs.
The future of these tariffs is far from certain. On Dec. 1, President Trump met with Chinese President Xi Jinping during the G20 Leaders’ Summit in Argentina and agreed to a temporary “cease fire,” which delayed any escalation of the existing tariffs for another three months, but didn’t do away with the tariffs that are already in place. Whether 90 days is enough time for China to commit to the trade and economic reforms sought by the U.S. government as a condition for removing existing Section 301 tariffs remains to be seen, as does how long it may be before changes would be implemented. A variety of potential outcomes is possible; potential paths include long-term continuation of the tariffs on Chinese and U.S. products, an agreement to phase out tariffs over time as Chinese intellectual property practices change, de-escalation in specific industry sectors and more.