Will Powersports Product Tariffs Continue to Increase?

The MIC Government Relations Office is urgently calling on all MIC members that import batteries from China to send staff a list of harmonized tax schedule codes for these powersports products by May 28. This is critical in helping the GRO defend against greatly increased tariffs as it responds to the United States Trade Representative.

The HTS codes should be sent to [email protected].

“Only last week, the USTR released a long-delayed, four-year review of China Section 301 tariffs and now there’s a proposal to skyrocket electric vehicle taxes up to 100 percent, semiconductors to 50 percent, and lithium batteries up to 25 percent,” said Scott Schloegel, acting MIC President and CEO. “The cost of these tariffs would be borne almost entirely by U.S. businesses, powersports companies and dealerships, and by consumers. We must prepare to respond and we need to know exactly which HTS codes you are using to import batteries from China.”

Today, the USTR issued a Federal Register Notice on its proposed modifications to the China tariffs. The notice sets up a 30-day period for stakeholders to provide comments on the proposed modifications to certain sectors and HTS lines. The comment period will open on May 29, close on June 28, and there will be no public hearing. The USTR is listing the various HTS lines, the proposed tariff increases, and the proposed dates, all set to take effect over the next three years. The USTR is proposing that increases for this year be effective on August 1, and that increases for 2025 and 2026 take effect on the first day of each of those years.

The USTR stated earlier that “To encourage further elimination of the (People’s Republic of China’s) technology transfer-related acts, policies, and practices, Ambassador (Katherine) Tai has recommended that products from the PRC currently subject to Section 301 tariffs should remain. Additionally, in light of the increased burden on U.S. commerce, President Biden is directing Ambassador Tai to take action to add or increase tariffs for certain products. As the Report details, Ambassador Tai will propose the following modifications in strategic sectors:”