Section 301 Petition Pulled, But Tariffs Still on the Horizon

At a Glance

• On December 2, 2024, Katherine Tai announced that Facing Fentanyl decided to withdraw their petition, which requested an increase of the Section 301 tariff for Chinese products on USTR’s lists 1 and 2 from the pre-existing 25% to 50%.
• The incoming administration will likely take action aligned with the Section 301 petition’s goals, whether it be through a Section 301 investigation or via executive action.

This is an update on our previous client alerts, “Are Tariffs the New Ammunition to Combat the Fentanyl Crisis?” and “Updates on the Potential Trade Tariffs for the Fentanyl Epidemic.”

We reported that a Section 301 petition had been filed by a nonprofit, Facing Fentanyl, requesting that the Office of the United States Trade Representative (USTR) conduct a Section 301 investigation into the People’s Republic of China’s alleged involvement with illicit fentanyl trade. Further, Facing Fentanyl’s main request within the petition is an increase of the Section 301 tariff for Chinese products on USTR’s lists 1 and 2 from the pre-existing 25% to 50%, which aligns with President-elect Trump’s plan to raise tariffs on China and Mexico.

Facing Fentanyl’s Petition Withdrawn

On December 2, 2024, the withdrawal of Facing Fentanyl’s Section 301 petition was announced. Ambassador Katherine Tai released a statement on USTR’s website with the news while also applauding Facing Fentanyl’s Section 301 petition and their efforts of bringing attention to the fentanyl crisis.

The incoming administration will likely take action aligned with the Section 301 petition’s goals, whether it be through a Section 301 investigation or via executive action, as President-elect Trump previously announced on Truth Social that he will impose an additional 10% tariff on China to combat “the massive amounts of drugs, in particular Fentanyl, being sent into the United States.”

The founder of Facing Fentanyl, Andrea Thomas, has taken note of President-elect Trump’s recent statements, which can be found in our article “Inauguration Day or New Tariff Day?” Consequently, Ms. Thomas believes the next administration will look upon the petition more favorably and noted she looks forward to working with USTR in the future.

Conclusion

Companies should continue to stay informed about changing trade policies that could impact their operations and bottom line, as the withdrawal of this petition is unlikely to be the end of the discussion linking tariffs and the fentanyl epidemic in the United States.

For More Information

Our team strives to keep businesses up to date on the ever-evolving trade sector. For more information on these developments, please contact the authors.