Section 301 Target Countries Flood USTR With Opinions: Global Companies Seek "Exemptions" vs. U.S. Manufacturers Demand "Strong Tariffs"

33 Submissions Filed Just One Day Before the Deadline
Companies from Korea, Taiwan, Japan, and India Join In
Majority of Hearing Attendees Are U.S.-Based Firms
Fierce Standoff: U.S. Manufacturing Protection vs. Import and Distribution Sectors

On the eve of the deadline for submitting opinions on the United States' Section 301 trade investigation, global companies with local subsidiaries in the U.S. have been making successive requests for tariff exemptions and exceptions. Countries from Asia, including Korea, Taiwan, and Japan, as well as European countries, have joined in, emphasizing the negative impact on local industries and the importance of cooperation with the United States. In contrast, U.S.-based manufacturers have requested to attend hearings, urging for the imposition of strong tariffs to protect domestic industries.

According to an analysis by The Asia Business Daily on the 14th of the list of submissions regarding the Section 301 investigation posted on the website of the United States Trade Representative (USTR), as the deadline (midnight on April 15) approaches, companies from Asia, Europe, and other regions targeted by the investigation have been pouring in written opinions.

Jamison Greer, Representative of the United States Trade Representative (USTR). Reuters·Yonhap News.

The USTR announced the initiation of the Section 301 investigation on March 11 and will collect submissions until midnight on the 15th, after which public hearings are scheduled for May 5-8. The official website is currently accepting both written submissions and requests to attend the hearings.

Out of the 111 organizations that submitted opinions (excluding duplicates from the total of 121 submissions, as of 1 p.m.), as many as 33 submissions were filed on April 13 alone, just two days before the deadline. Those submitting opinions on this day included the Korea Construction Equipment Manufacturers Association, the Taiwan Association of Machinery Industry, the Mechanical Engineering Industry Association (Germany), the Swiss Association of Mechanical, Electrical and Metal Industries, Kawasaki Motorcycles (Japan), and the Indian Steel Association, representing a wide range of countries and sectors. Previously, the USTR had designated 16 economic regions, including Korea, for investigation regarding excess manufacturing capacity and overproduction, and 60 economic regions for investigation regarding non-compliance with import bans on products made with forced labor.

Among all submissions, the sector with the largest share was consumer goods (25 submissions). This was followed by materials and raw materials companies, such as those in chemicals, metals, and plastics (16 submissions). In addition, a significant proportion came from manufacturing companies that are active in the U.S. market, including machinery, robotics, and equipment parts manufacturers (15 submissions).

Global companies commonly argued that imposing tariffs could negatively affect local industries. SMA Solar Technology, a leading German solar inverter company, requested a tariff exemption for solar inverters, stating in its submission that "inverter production is not speculative expansion but an engineering-intensive industry based on real project pipelines and market demand." The company emphasized that "exports from the European Union are market-based trade, not the result of unfair practices." It also pointed out that tariffs could burden the residential solar market and increase data center facility costs, thereby raising power costs for U.S. companies.

Partial list of submissions regarding the Section 301 investigation filed on the website of the United States Trade Representative (USTR) on the 14th. Screenshot from USTR website.

Kawasaki Motorcycles, a Japanese motorcycle manufacturer, requested the establishment of a special tariff exemption code for foreign-made parts used in finished products manufactured in the U.S. The company argued that imposing tariffs on capital goods that cannot be sourced domestically would undermine the competitiveness of U.S. manufacturing. It also highlighted that it collaborates with more than 1,200 local suppliers.

By country, U.S. companies accounted for the largest share of submissions (69, about 62%). This indicates a mix of opinions between U.S. manufacturers who support tariffs on foreign firms and importers/distributors who oppose such tariffs. A fierce confrontation between U.S. companies is expected at the hearings early next month.

Cabot Corporation, a U.S. chemical company, pointed out the issue of overproduction and government subsidies for Indian-made carbon black (a hydrocarbon powder) in its submission, and called for strong tariffs to protect domestic manufacturing. The company stated, "Carbon black is a strategic material essential for the automotive, defense, energy, electronics, and infrastructure supply chains," and warned that "the surge in cheap Indian imports is undermining the industrial base."

Notably, many of those requesting to attend the hearings, as opposed to only submitting written opinions, were large U.S. industry associations. Among them, associations in materials, metals, chemicals, and steel are expected to demand selective tariffs on foreign companies to protect domestic industries. The Aluminum Association of the United States indicated in its hearing request that it would "emphasize that Section 301 tariffs should be selectively applied based on the 'Market Economy Status' of the country concerned."

On the other hand, local importers and distributors have objected to the imposition of tariffs. The Footwear Distributors and Retailers of America (FDRA) stated in its hearing request, "After last year's high tariffs on Chinese products, production bases have shifted to Indonesia, Vietnam, and India," and pointed out that "tariffs have only increased cost burdens for small manufacturers within the United States."

This content was produced with the assistance of AI translation services.