NEWARK, N.J.—The sweeping 10 percent tariffs imposed by President Trump early this year under Section 122 of the Trade Act of 1974 are set to expire this Friday, July 24, but White House officials and optical industry experts say they expect the tariffs to be replaced quickly. In addition, earlier this week, the administration also announced a 50 percent tariff on Canadian goods under Section 338 of the Tariff Act of 1930. The White House said the move was “in response to Canada’s discriminatory treatment of American products” and, according to U.S. Trade Representative (USTR) Jamieson Greer, has signaled that more levies could be coming. What that means for the optical industry is still developing.
The expiring Section 122 tariffs were enacted following the U.S. Supreme Court’s February decision, limiting the presidential authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA), but could only be in effect for a maximum of 150 days. As those tariffs near expiration, the USTR announced findings from a forced labor investigation referred to as Section 301, citing forced labor concerns across more than 60 countries. According to The Vision Council, that could add costs at every level of the supply chain.
“While it has not been announced yet, our expectation is that the government will implement its recent decision in the section 301 forced labor investigation, effective on or near July 24,” Omar Elkhatib, director of government relations for The Vision Council told VMAIL. “If so, then goods originating from roughly a dozen countries and territories, including Canada, Mexico, and the E.U., will be subject to an additional 10 percent tariff, while goods from a broader group of more than 40 countries, including China, India, Japan, and South Korea, will be subject to a 12.5 percent tariff. This new section 301 tariff will stack with the most favored nation duty.”
Elkhatib noted several product categories would be excluded including certain textiles and apparel, produce and spices, energy products, select chemicals and minerals, medicines, certain aerospace products, some metals, and select semiconductor items. “Unfortunately, as of today optical products are not exempt,” he told VMAIL.
In other tariff news, Elkhatib said a new 25 percent Section 301 duty took effect on July 22 for certain goods from Brazil. The Vision Council has determined that optical products and equipment typically used in the production of optical products, if of Brazilian origin, are covered by the additional tariff, Elkhatib said.
Meanwhile, the federal government has issued an estimated $80 billion in tariff refunds, according to reputable news outlets, following the SCOTUS decision in February with the new U.S. Customs and Border Protection (CBP) refund mechanism known as CAPE, or Consolidated Administration and Processing of Entries, which went into effect on April 20.
