Arlington, Va.— NEMA President and CEO, Debra Phillips today issued the following statement in response to the United States Trade Representative’s (USTR) announcement on Extending Certain Exclusions from China Section 301 Tariffs:

“Friday’s Section 301 announcement by the Biden Administration to effectively increase the cost of 27 vital electrical components by $1.3 billion a year will only serve to slow down progress on our mutually shared goals of advancing electrification and the energy transition. This decision is in addition to nearly $3 billion in higher Section 301 tariff costs for batteries, semiconductors, solar cells, steel, and other key electrical goods announced just last week.

“Electrical manufacturers are actively working to onshore, reshore, and friend-shore supply chains, but it cannot be done overnight. In the meantime, this Administration cannot turn a blind eye to known supply chain realities when making serious policy decisions that will punish electrical manufacturers that have invested over $12 billion over the last two years to expand domestic capacity.

“We look forward to sharing our detailed comments on behalf of U.S. manufacturers with the Administration and will continue to advocate for common-sense trade policies that allow domestic manufacturers to compete and further the Administration’s electrification and climate goals.”