How 301 Tariff is affecting the paper industry:

Section 301 is part of the Trade Act of 1974 where it allows the President to take actions to remove any act, policy, and practice from foreign government with unfair foreign barriers to the U.S. exports. If by any reason the United State Trade Representative seeks an investigation involving Section 301, it must be negotiable with foreign countries with compensation/ getting rid of trade barriers.

One major impact on 301 Tariff affecting the paper industry is the cash flow due to money spent in paying for tariff. The money only gets reimbursed when companies are able to increase prices on clients. Some paper companies are holding onto tariffed inventories longer than expected because of slower sales. Many small private companies in the paper industry are suffering from Section 301 Tariffs from China and trying to stay competitive at the same time.

This is also causing companies in the paper industry to evaluate carefully on how products are being identify and their product designs. For instance, minor changes in paper products design can lead small tariff adjustments and unwanted tariffs.

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