Under Section 201 of the Trade Act of 1974, President Donald Trump has imposed new tariffs on imported large residential washing machines and imported solar cells and modules, marking the first time the United States has imposed global safeguard restrictions since 2002. These new tariffs were based on recommendations by the U.S. International Trade Commission.
In the Section 201 washing machines case that domestic producer Whirlpool requested last summer, the president instituted a 20 percent tariff rate on the first 1.2 million imports, which will decrease by 2 percent annually the next two years. For imports beyond the first 1.2 million units, the president imposed a 50 percent tariff rate, which will decrease by 5 percent annually the next two years. For additional information on this tariff, the covered washers, and other adjustments, please see the Presidential Proclamation to Facilitate Positive Adjustment to Competition from Imports of Large Residential Washers. The U.S. Trade Representative has also released a Fact Sheet that sets forth details on the Tariff-Rate Quotas being applied.
In the Section 201 solar cell and module case that domestic producers Suniva and SolarWorld requested last year, the president imposed a 30 percent tariff rate the first year, which will decrease by 5 percent annually the next three years. Under this plan, the first 2.5 gigawatts of imported cells will be excluded from the additional tariff. For additional information on this tariff, the covered crystalline silicon photovoltaic (CSPV) cells, and other adjustments, please see the Presidential Proclamation to Facilitate Positive Adjustment to Competition from Imports of Certain Crystalline Silicon Photovoltaic Cells. The U.S. Trade Representative has also released a Fact Sheet that sets forth details on the additional duties being applied.
In announcing these Section 201 actions, President Trump stated that his administration “is committed to defending American companies, and they’ve been very badly hurt from harmful import surges that threaten the livelihood of their workers, of jobs, actually, all over this country — many different industries.” With regard to washing machines and solar cells, he stated that these trade actions “uphold the principle of fair trade and demonstrate to the world that the United States will not be taken advantage of anymore.”