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USTR proposes further two-month suspension of Section 301 action on China’s maritime, logistics, and shipbuilding sectors

Proposed extension through January 9, 2027, would allow continued trade negotiations, with public comments due October 30, 2026.

October 23, 2026

The Office of the United States Trade Representative (USTR) today issued a request for comments regarding a proposed modification to further suspend the Section 301 action targeting China’s maritime, logistics, and shipbuilding sectors. The USTR seeks to extend the current suspension of responsive actions for an additional two months, through January 9, 2027, to allow continued negotiations with China concerning the acts, policies, and practices at issue.

Background

The original Section 301 action was taken following public comments and consultations with advisory committees and the Section 301 Committee, as detailed in prior Federal Register notices. Pursuant to a trade and economic deal announced by the White House on November 1, 2025, the United States suspended responsive actions for one year beginning November 10, 2025, to facilitate negotiations and domestic efforts related to American shipbuilding. The current suspension period is set to expire on November 9, 2026.

Proposed two-month suspension

The proposed modification would suspend the responsive actions from November 10, 2026, through January 9, 2027. During this period, no party would accrue liability for or be required to pay fees on maritime transport services under Annexes I, II, or III of the April 23, 2025, notice, as modified by the October 16, 2025, notice, nor duties provided in Annex V.A of the October 16, 2025, notice.

Written comments regarding the proposed suspension are due by October 30, 2026, at 5:00 PM ET.

For more information, contact a professional with KPMG Trade & Customs services:

 

Andrew Siciliano
Partner, U.S. & Global Practice Leader

E: asiciliano@kpmg.com

Doug Zuvich
Partner

E: dzuvich@kpmg.com

Irina Vaysfeld
Principal

E: ivaysfeld@kpmg.com

John L. McLoughlin
Principal

E: jlmcloughlin@kpmg.com

Luis (Lou) Abad
Principal

E: labad@kpmg.com

George Zaharatos
Principal

E: gzaharatos@kpmg.com

Christopher Young
Principal

E: christopheryoung@kpmg.com

Amie Ahanchian
Principal

E: aahanchian@kpmg.com

Gisele Belotto
Principal

E: gbelotto@kpmg.com

Steve Brotherton
Principal

E: sbrotherton@kpmg.com

Jessica Libby
Principal

E: jlibby@kpmg.com

Dawn Olesky
Principal

E: dolesky@kpmg.com

Frances Xing
Principal

E: francesxing@kpmg.com

 

 

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