Section 201 Tariffs
Section 201 Tariffs are trade safeguard measures imposed under Section 201 of the Trade Act of 1974. These measures are designed to provide temporary relief to domestic industries that are seriously injured, or threatened with serious injury, by a surge in fairly traded imports.
Unlike antidumping or countervailing duties, Section 201 actions do not require a finding of unfair trade practices. Instead, the U.S. International Trade Commission conducts an investigation to determine whether increased imports are a substantial cause of serious injury to a U.S. industry. If injury is found, the ITC recommends remedial action to the President, who decides whether to implement tariffs, quotas, tariff rate quotas, or other relief measures.
Section 201 tariffs are typically time-limited and may be phased down over several years. They are intended to give domestic industries an opportunity to adjust to import competition.
Key considerations regarding Section 201 tariffs include:
- Injury standard: Based on serious injury from increased imports, not unfair trade
- Presidential discretion: The President determines the form and duration of relief
- Product scope: Applied to specific products identified in the investigation
- Temporary nature: Relief measures generally expire after a defined period
- Interaction with other duties: May apply in addition to standard duty rates
Because Section 201 measures are safeguard actions, they involve distinct procedural and legal standards compared to Section 232 or Section 301 tariffs.