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USTR Tariff Exclusion Process Under Scrutiny For Inconsistencies

U.S. and Chinese flags

In 2018, the United States Trade Representative (USTR) initiated a tariff exclusion process aimed at allowing businesses to seek protection from levies imposed on Chinese products. Companies were required to demonstrate that the tariffs would result in 'severe economic harm' to the firm or US interests. They also had to prove that alternative products were not readily available outside of China or that the product in question was not strategically important to China.

Over the period from 2018 to 2020, USTR received approximately 53,000 exclusion requests but rejected 87% of them, as per a review conducted by the Government Accountability Office (GAO). The GAO review highlighted 'inconsistencies' in the review process at USTR and noted that the agency failed to fully document its internal procedures.

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