The U.S. Trade Representative (USTR) announced on July 10, 2020, that certain French goods would be subject to Section 301 duties. The USTR will apply a 25% duty on 21 tariff lines, including cosmetics, soaps, and handbags. The action has been delayed until January 6, 2021, the longest possible extension (i.e., 180 days from a decision). The tariffs come as a result of France’s proposed digital services tax, which the USTR has determined to be “unreasonable or discriminatory and burdens or restricts U.S. commerce.”

Initially, the Section 301 penalty threatened duties on 63 tariff lines. These additional products have been left off the action for now but included cheeses, champagne, cookware, and other goods. Deringer will continue to report on Section 301 duties proposed on French products. If you have questions, please contact Deringer’s Compliance Department.