This week, EWTC President Tim Tarpley testified before the Office of the U.S. Trade Representative on the potential impacts to OFS and U.S. energy dominance from the current 301 tariff investigation. After the Supreme Court struck down the IEEPA per-country tariffs, USTR initiated Section 301 investigations as a potential path to replace some or all of the tariffs. The investigation could result in additional tariff lines being placed on some or all products from the listed countries, potentially on top of existing 232 tariffs.
EWTC supports the goals of strengthening U.S. manufacturing, advancing American energy dominance and holding bad actors accountable. However, we believe we can achieve that goal without imposing new costs on American companies and workers; these policies are meant to protect.
The energy services and equipment sector is already managing the impact of Section 232 tariffs on steel, aluminum and related inputs. Layering additional Section 301 tariffs on top of those existing cost pressures could make it more expensive to build, maintain and deploy the equipment needed to produce American energy.
During the testimony, Tarpley asked USTR for five specific actions as part of their investigation:
- First, consider exempting critical energy components and materials from new 301 tariffs entirely.
- Second, do not impose new Section 301 duties on products or inputs already subject to Section 232 tariffs, particularly in steel, aluminum, and heavy industrial products. Stacking tariffs on the same goods compounds cost without adding capacity.
- Third, exempt USMCA-qualifying goods. Mexico and Canada are integrated partners in North American energy supply chains.
- Fourth, ensure any new Section 301 duties are eligible for duty drawback.
- Fifth, absent a full exclusion, establish a meaningful exclusion process for critical energy inputs where no domestic supplier exists today at a commercial scale or specification.
The testimony before the committee is expected to last until the end of this week. After that, participants will have until May 15th to submit any additional written documents for consideration. We expect an initial posting of the new per-country tariff lines in early July. EWTC will continue engaging with USTR and federal policymakers as the process continues to ensure EWTC’s voice is heard and workable solutions for OFS are found.
Read the full testimony.
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