Confusion Reigns on Fate of Section 301 Tariffs on French Goods

On the day that additional 25% tariffs were scheduled to go into effect on French handbags and cosmetics, the Office of the U.S. Trade Representative and CBP made no public statement about the tariffs' fate, leaving importers in the dark about what they should do.

Jonathan Gold, head of government relations for the National Retail Federation, said that when he asked CBP if the tariffs were in effect as scheduled on Jan. 6, he was told to ask USTR. He said that because CBP said that, he thinks the tariffs are not being collected. “It’s unclear. Nobody has an answer right now to what’s happening,” he said, and said that the USTR media office had not responded to his questions on the matter.

A member of the National Customs Brokers and Freight Forwarders Association of America's customs committee said CBP told her that they are awaiting instructions from USTR before hiking the tariffs. "CBP is poised to do what they have to as soon as they receive the required instructions. In the meantime, we have double work."

USTR Robert Lighthizer is reportedly considering another 90-day suspension of duties on the French goods, which would allow the Biden administration to decide how to settle the issue. Neither USTR nor CBP responded to International Trade Today's requests for comment. The French embassy also did not respond to questions about the tariffs.

“Folks want to know what they’re supposed to be doing, make sure they’re complying,” Gold said.

Nate Herman, senior vice president for policy at the American Apparel and Footwear Association said in a phone interview that, “we've been trying to figure out the same thing, actually.” Herman said AAFA members did not stockpile goods on the tariff list. “We just didn’t think there was going to be anything on the digital services tax. We hadn’t heard anything for a while,” he said.