An ongoing investigation into the Section 301 tariffs by the U.S. International Trade Commission is holding public hearings, the National Fisheries Institute is advocating for relief for the seafood industry.
The U.S. ITC is a quasi-independent, bipartisan government agency that advises the federal government on trade issues, including performing analysis on tariffs, competitiveness, and subsidies.
The initial Section 301 tariffs approved by former U.S. President Donald Trump came into effect July 2018 and ultimately resulted in a tit-for-tat trade war with China. The tariffs have not been rescinded by Trump's successor, U.S. President Joe Biden.
National Fisheries Institute Vice President for Government Affairs Robert DeHaan testified at the most recent hearing held by the commission, on 22 July. As he has done previously in formal governmental hearings, DeHann argued against U.S. tariffs on imported seafood.
Despite the bilateral “Phase One” trade deal signed in January 2020 and aimed at easing the trade standoff between the two countries, China has thus far failed to meet the seafood purchase agreements included in the deal.
According to DeHaan, the ongoing tariffs are continuing to cost U.S. consumers and businesses money.
“The Section 301 duty on inbound seafood items has raised costs for U.S. seafood importers and processors, making their products and workers less competitive and less affordable, and forcing them and their customers to shoulder a massive tax increase,” DeHaan said in his testimony. “Even incorporating the value of applicable tariff exclusions, NFI estimates that U.S. seafood companies – overwhelmingly small businesses – have paid about USD 700 million [EUR 685 million] in Section 301 duties since the List 3 tariff took effect.”
China’s retaliatory tariffs have also had a heavy impact on the U.S. seafood industry, DeHaan said.
“China responded to USTR actions with tariffs of its own, aimed at U.S. goods exports. Starting in summer 2018, this retaliation targeted fish,” DeHaan said. “In quick succession, [China] assessed 10 and then 25 percent tariffs against U.S.-harvested salmon, lobster, Alaska pollock, cod, halibut, sole, whiting, crab, oysters, and a dozen other species. The results were predictable. The China market, which in 2017 accounted for more than one-fourth of all U.S. seafood exports – has eroded in value by over USD 500 million [EUR 489 million] and counting.”
The heavy financial impacts of the tariffs have compounded the inflationary pressures faced by the seafood industry, which is putting seafood out of reach for some consumers.
“The price impacts of Section 301 duties on China products are highly regressive, making it harder for low- and middle-income American families to access seafood in the freezer aisle at retail, and in quick-service and fast-casual restaurants,” DeHaan said. “Piling tariffs on top of record food inflation may finally place the affected items out of reach of these families.”
The ongoing U.S. International Trade Commission investigation will conclude in a report to congressional committees scheduled for delivery in March 2023.
Photo courtesy of the National Fisheries Institute
