Amid opaque tariff process, questions arise as to why some companies receive exemptions

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Amid opaque tariff process, questions arise as to why some companies receive exemptions
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As of Friday, tariffs on $75 billion of imported goods such as soybeans, cars and crude oil will be reduced by half as part of a trade war cease-fire. But it still leaves thousands of American companies paying a higher price for goods.

The USTR declined to clarify its process when contacted by NBC News. Instead, it pointed to the Federal Register, which states that the USTR “will evaluate each request on a case-by-case basis, taking into account the asserted rationale for the exclusion, whether the exclusion would undermine the objective of the Section 301 investigation, and whether the request defines the product with sufficient precision.

Jasco, an Oklahoma City-based home electronics company, submitted 69 separate requests to the USTR to exempt some of its consumer electronics products. It won a few exemptions and lost others. One of the exemptions it lost was for a plug-in smart switch that works with Amazon's Alexa voice assistant, though the administration granted an exclusion for similar in-wall switches.

The USTR’s approval rate is 11.7 percent, said Christine McDaniel, a senior research fellow at George Mason University’s Mercatus Center who focuses on international trade. Out of 43,968 product exclusion requests, only 5,124 have been approved so far, according to the center’s research.

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