The proposed tariffs will be an across the board 25 percent ad valorem duty on covered products. Following the release of the proposed list, the public will have thirty days to comment. Importing and exporting companies should file comments to ensure that certain products either remain on or are removed from the proposed list. Unlike the steel and aluminum tariffs recently imposed under Section 232, there is not a process, other than the filing of comments, to get specific products excluded. The notice will also announce the date for a public hearing. USTR, with the assistance of the interagency Section 301 Committee, will review all comments and then publish the final determination in the Federal Register and implement the new tariffs.

In a Section 301 investigation, if the USTR determines that a Chinese act, policy, or practice, (i) violates, or is inconsistent with, the provisions of, or otherwise denies benefits to the United States under, any trade agreement, or (ii) is unjustifiable and burdens or restricts United States commerce, it may take a broad range of actions to address and correct the harm.

Notably, the memorandum signed by the President does not direct the USTR to investigate any specific law, policy, or practice. Rather, it instructs the USTR to determine “whether to investigate” any Chinese laws, policies, practices, or actions. As such, there is no current timeline for the initiation of an investigation or imposition of any remedial actions. USTR Lighthizer has indicated, however, that determining whether to initiate an investigation will be one of his “highest priorities,” and he will “report back to the President as soon as possible.”