The exemption protects seed moving through global research and production systems from tariffs of up to 12.5% on imports from 60 U.S. trading partners.
The Office of the U.S. Trade Representative exempted a broad range of planting seed from new Section 301 tariffs. This targets countries that have not enacted or effectively enforced bans on imports produced with forced labor.
USTR imposed tariff rates of 10% or 12.5% on most imports from 60 trading partners. The new duties took effect July 24 and apply to countries that collectively account for 99.4% of U.S. imports. Countries that adopted or committed to forced labor import prohibitions face the lower rate, while others face the 12.5% rate.
Planting seed will not face those additional duties. The exemptions cover seed corn, soybeans, wheat, barley, oats, rye, grain sorghum, cotton, sunflower, canola and sugar beets. They also cover forage crops and numerous vegetable, flower, tree and shrub seed categories.
“Yesterday’s USTR announcement was an important step in recognizing the unique nature of seed research and production,” American Seed Trade Association (ASTA) president and CEO Andy LaVigne said in a news release.
The seed exemptions formed part of a broader decision to remove 471 additional products from the tariff action. Other exemptions include certain agricultural products, fertilizer and pesticide inputs, pharmaceuticals, metals and industrial materials.
Why Planting Seed Received an Exemption
USTR said commenters explained that tariffs on planting seed had increased costs for U.S. seed producers and farmers. They also emphasized that seed production cannot always remain within one country because companies use different climates, production environments and growing seasons to advance research and produce sufficient quantities of seed.
“We extend our appreciation to the Administration for acknowledging the vital role that trade plays in delivering seed innovation to U.S. farmers,” LaVigne said.
Seed may cross international borders several times during research, multiplication, conditioning and commercial production. The exemption allows companies to continue using those international production systems without adding the new Section 301 duties each time qualifying seed enters the United States.
USTR acknowledged concerns that higher production costs could make some varieties economically impractical to commercialize in the United States. Those costs may potentially reduce the number of choices available to farmers and other seed customers.
“Tariff relief under these investigations, and others, will help ensure that U.S. seed companies can conduct necessary steps of seed production that cannot be relocated and remain economically competitive in a global industry,” LaVigne said.
Part of a Broader Forced Labor Trade Action
USTR investigated whether 60 economies failed to prevent goods made with forced labor from entering their markets. The agency held two rounds of public hearings. They consulted with more than 45 governments and reviewed more than 2,100 comments across the investigation and proposed-action phases.
The planting seed exemption does not change the broader purpose of the action. USTR said tariffs aim to persuade trading partners to establish and enforce import restrictions against goods produced with forced labor.
“The U.S. seed sector remains a committed partner in combating forced labor, and in supporting the innovation pipeline that empowers American farmers to lead the world in agricultural exports,” LaVigne said.
