International Trade Today is a Warren News publication.
2019 Bulletins
19
Dec

The U.S.-Mexico-Canada Agreement passed the House of Representatives with a vote of 385-41. The implementing legislation will be taken up by the Senate in the new year. If the impeachment trial begins in early January, it is expected to wait until that trial is over.

This was the biggest vote for a free trade deal in the House since the Canada Free Trade agreement in 1988, which had 366 yes votes. Only Jordan and Israel trade deals had more support.

13
Dec

The Office of the U.S. Trade Representative issued a new set of product exclusions from the 25 percent Section 301 tariffs on goods from China. The exclusions include products from the third list of Section 301 goods. The new exclusions "are reflected in 9 ten-digit HTSUS subheadings and 35 specially prepared product descriptions, which cover 75 separate exclusion requests," according to the notice.

The product exclusions apply retroactively from Sept. 24, 2018, and remain in effect until Aug. 7, 2020, USTR said.

The agency also issued a new exclusion to the first tranche of Section 301 tariffs for subheading 9030.90.4600 that will apply from July 6, 2018 though Oct. 1, 2020. That subheading covers parts and accessories for articles of subheading 9030.10 (instruments and apparatus for measuring or detecting ionizing radiations), other than printed circuit assemblies. The agency issued another notice on the second tranche of tariffs to make technical fixes and amend the notes to the HTSUS.

13
Dec

The Section 301 tariffs on goods from China that were set to take effect on Dec. 15 will not go forward because a phase one deal between the U.S. and China was reached, President Donald Trump said in a Dec. 13 tweet. "The Penalty Tariffs set for December 15th will not be charged because of the fact that we made the deal," he said.

The 15 percent tariffs that took effect on Sept. 1 will also be reduced to 7.5 percent, though the other 25 percent tariffs will stay in place, he said. "We have agreed to a very large Phase One Deal with China," said Trump. "They have agreed to many structural changes and massive purchases of Agricultural Product, Energy, and Manufactured Goods, plus much more. The 25% Tariffs will remain as is, with 7 1/2% put on much of the remainder."

Negotiations for the next phase of the deal will begin "immediately," Trump said. The Office of the U.S. Trade Representative described the deal in a news release as a "historic and enforceable agreement."

10
Dec

House Speaker Nancy Pelosi and Ways and Means Chairman Richard Neal announced that they have reached a deal with the Trump administration on changes to the new U.S.-Mexico-Canada Agreement. They called the changes they won over the last six months a victory for workers. They did not share many details of how the environmental, labor, enforcement and biologics provisions changed, but said the text would be shared before votes in the House of Representatives.

2
Dec

The U.S. Trade Representative on Dec. 2 issued a list of 63 subheadings that may face tariffs of up to 100 percent when imported from France in retaliation for that country’s digital services tax. The proposed list, which includes goods of chapters 4, 33, 34, 42, 69 and 73 of the tariff schedule, comes as a result of the agency’s finding that the French tax restricts U.S. comments and violates Section 301. Comments on the proposed tariffs are due to USTR by Jan. 6, and a hearing is scheduled for Jan. 7.

2
Dec

President Donald Trump plans to bring back the Section 232 tariffs on steel and aluminum from Brazil and Argentina, he said in a tweet. "Brazil and Argentina have been presiding over a massive devaluation of their currencies. which is not good for our farmers," he said. "Therefore, effective immediately, I will restore the Tariffs on all Steel & Aluminum that is shipped into the U.S. from those countries."

26
Nov

The Office of the U.S. Trade Representative issued a new set of product exclusions from the 25 percent Section 301 tariffs on goods from China. The exclusions include products from the third list of Section 301 goods. The new exclusions "are reflected in 32 specially prepared product descriptions, which cover 39 separate exclusion requests," according to the notice.

The product exclusions apply retroactively from Sept. 24, 2018, to Aug. 7, 2020, USTR said.

8
Nov

The Office of the U.S. Trade Representative issued a new set of product exclusions from the 25 percent Section 301 tariffs on goods from China. The exclusions include products from the third list of Section 301 goods. The new exclusions "are reflected in 2 ten-digit HTSUS subheadings and 34 specially prepared product descriptions, which cover 42 separate exclusion requests," according to the notice.

The product exclusions apply retroactively from Sept. 24, 2018, to Aug. 7, 2020, USTR said.

24
Oct

The Office of the U.S. Trade Representative issued a new set of product exclusions from the 25 percent Section 301 tariffs on goods from China. The exclusions include products from the third list of Section 301 goods. The new exclusions include " 83 specially prepared product descriptions, which cover 95 separate exclusion requests", according to the notice.

The product exclusions apply retroactively to Sept. 24, 2018 and until Aug. 7, 2020, the USTR said.

14
Oct

The Section 232 tariffs on steel from Turkey will soon again go from 25 percent to 50 percent, President Donald Trump said in a tweet, that includes a linked statement. The change in tariffs are the result of Turkey's "destabilizing actions in northeast Syria." The tariffs were previously increased to 50 percent, but were reduced back to 25 percent in May. Trump also said the U.S. would stop negotiating a trade deal with Turkey.

11
Oct

Acting Department of Homeland Security Secretary Kevin McAleenan is leaving the government, President Donald Trump said in a tweet. McAleenan, who was a confirmed CBP Commissioner prior to taking the DHS post, has faced immigration-related criticism since he became the acting secretary. "Kevin now, after many years in Government, wants to spend more time with his family and go to the private sector," said Trump.

2
Oct

The U.S. may impose up to about $7.5 billion worth of retaliatory tariffs on the European Union for its subsidies to Airbus, a World Trade Organization arbitrator ruled Oct. 2. The WTO’s Dispute Settlement Body must still adopt the decision of the arbitrator at its next meeting, scheduled for Oct. 28. The U.S. could also request a special meeting within 10 days, meaning tariffs could come as early as Oct. 12, according to a Reuters report. The U.S. Trade Representative has proposed lists totaling over $20 billion in imports from the EU on which it may impose tariffs.

30
Sep

The Office of the U.S. Trade Representative issued two new sets of product exclusions from the 25 percent Section 301 tariffs on goods from China. The exclusions include products from the first two lists of Section 301 goods. The new exclusions from the first tranche include "92 specially prepared product descriptions" and cover 129 separate requests, according to the notice. The second tranche exclusions include 111 product descriptions and covers 382 requests, the agency said.

The product exclusions apply retroactively to when each tranche initially took effect. That was July 6, 2018, for the first tranche, Aug. 23, 2018, for the second tranche. The exclusions will apply for a year after publication in the Federal Register.

25
Sep

The U.S. Trade Representative announced that the U.S. will reduce or eliminate tariffs on certain Japanese machine tools, bicycles, bicycle parts, fasteners, steam turbines and musical instruments, as well as eliminating or reducing tariffs on 42 tariff lines that cover $40 million in food and agricultural imports from Japan, as part of a "mini-deal" recently agreed to by the two countries. Those food and agricultural imports include plants, flowers, persimmons, green tea, chewing gum and soy sauce.

The announcement, which did not mention a date the agreement will go into effect, also said that the two countries agreed to digital trade disciplines that prohibit data localization requirements, ensure cross-border data transfers in all sectors and prohibit discriminatory taxes on digital services or customs duties on electronic products.

18
Sep

The Office of the U.S. Trade Representative issued three new sets of product exclusions from the 25 percent Section 301 tariffs on goods from China. The exclusions include products from the first three lists of Section 301 goods. The new exclusions from the first tranche include "310 specially prepared product descriptions" and cover 724 separate requests, according to the notice. The second tranche exclusions include 89 product descriptions and covers 400 requests, while the third tranche exclusions include 38 product descriptions that cover 46 exclusion requests, the agency said.

While the first two sets of exclusions apply for a year following publication in the Federal Register, the third tranche exclusions will expire on Aug. 7, 2020, the agency said. The USTR did that because allowing for a full year of those exclusions "would have resulted in disparities in the effective periods between exclusions granted early in the exclusion process and those granted later," the agency said.

The product exclusions apply retroactively to when each tranche initially took effect. That was July 6, 2018, for the first tranche, Aug. 23, 2018, for the second tranche and Sept. 24, 2018, for the third.

11
Sep

President Donald Trump said the next Section 301 tariff increase won't occur until Oct. 15, two weeks later than the previously announced date. "We have agreed, as a gesture of good will, to move the increased Tariffs on 250 Billion Dollars worth of goods (25% to 30%), from October 1st to October 15th," he said in a tweet.

23
Aug

The U.S. will on Oct. 1 raise its existing Section 301 tariffs on the first three lists of $250 billion in imports from China from 25 percent to 30 percent, said President Donald Trump in a series of tweets Aug. 23. The next set of tariffs set to take effect beginning Sept. 1 on $300 billion in imports from China will also be increased from 10 percent to 15 percent, Trump said.

The increases come in response to Chinese retaliatory tariffs announced Aug. 23 on $75 billion in U.S. exports. Trumps announcement did not distinguish between the list four tariffs that take effect Sept. 1, and the second set that will take effect Dec. 15.

“Sadly, past Administrations have allowed China to get so far ahead of Fair and Balanced Trade that it has become a great burden to the American Taxpayer,” Trump said. “As President, I can no longer allow this to happen! In the spirit of achieving Fair Trade, we must Balance this very unfair trading relationship. China should not have put new Tariffs on 75 BILLION DOLLARS of United States product (politically motivated!)"

13
Aug

The U.S. Trade Representative announced that some goods included on the upcoming list four of Section 301 tariffs, including laptops, computer monitors, cell phones, video game consoles, certain toys and certain items of footwear and clothing, will not face additional 10 percent tariffs until Dec. 15. The announcement said the tariff lines in question would be published on the USTR.gov website later on Aug. 13. The agency also said there will be some products excluded entirely from the new set of tariffs for health, safety, national security or "other factors," and that those tariff lines will also be published later in the day.

13
Aug

The U.S. Trade Representative released the tariff lines that won't face additional tariffs until December, and the list is far broader than electronics, clothes and toys. Chemicals, food, camping gear, blankets, baby items, sports equipment, watches, clocks, small appliances, wooden hangers and fireworks all are spared, along with a wide variety of clothes and electronics. The list covers more than 650 tariff lines.

The list of goods that will be taxed starting September 1 was also released, and covers food, beverages, chemicals, glasses and tableware, blinds, clothing in chapters 6101 through 6117; clothing in chapters 6201 through 6217, blankets, bed linens, tablecloths, footwear in chapters 6401 through 6406, and more.

13
Aug

CBP on Aug. 13 released a pre-publication version of a new proposed rule setting new importer identity verification requirements for customs brokers. Set for publication the following day, the proposal would create minimum standards for what information brokers have to collect from their clients, as well as requirements to verify and maintain records on that information.

Mandated by Section 116 of the Trade Facilitation and Trade Enforcement Act of 2015, the new standards are already met or exceeded by most customs brokers, CBP said. But by requiring all brokers to follow them, CBP hopes that the new rules will stem the practice of broker shopping.

The regulations would require that a broker follow the new standards at the time the power of attorney is obtained from any new client after the effective date of the final rule. For existing clients that are partnerships, brokers would have two years from the effective date to verify the client’s identity and update necessary information, and for all other clients, brokers would have three years, CBP said.

5
Aug

The Office of the U.S. Trade Representative issued its first set of product exclusions from the third group of Section 301 tariffs on goods from China. The new exclusions from the tariffs include "10 specially prepared product descriptions" and cover 15 separate requests, according to the notice. The product exclusions apply retroactively to Sept. 24, 2018, the date the third set of tariffs took effect at 10 percent. The tariffs were subsequently increased to 25 percent. The exclusions will remain in effect until one year after the notice is published.

1
Aug

President Donald Trump said a 10 percent tariff on imported goods from China on List 4 -- nearly all the remaining imports that have not been hit in Section 301 -- will start on Sept. 1. He linked the punishment to a lack of agriculture purchases and the fact that "my friend President Xi" did not stop the sale of fentanyl to the U.S.

Trump ended the string of tweets by saying, "We look forward to continuing our positive dialogue with China on a comprehensive Trade Deal, and feel that the future between our two countries will be a very bright one!"

29
Jul

The Office of the U.S. Trade Representative issued its first set of product exclusions from the second group of Section 301 tariffs on goods from China. Newly exempt from the tariffs are "69 specially prepared product descriptions." The exclusions cover 292 separate requests, according to the notice. The product exclusions apply retroactively to Aug. 23, 2018, the date the second set of tariffs took effect, and will remain in effect until one year after the notice is published.

10
Jul

The Office of the U.S. Trade Representative will begin a Section 301 investigation of France's proposed digital services tax, which is expected to pass the French Senate tomorrow, the USTR said in a news release. "The structure of the proposed new tax as well as statements by officials suggest that France is unfairly targeting the tax at certain U.S.-based technology companies," the release said. A Federal Register notice will follow with instructions on how to comment on or testify in front of the investigation.

Republicans and Democrats in leadership positions in tax-writing committees in the U.S. Congress praised the investigation's launch. Senate Finance Committee Chairman Chuck Grassley and Ranking Member Ron Wyden issued a joint release that said, "The United States would not need to pursue this path if other countries would abandon these unilateral actions and focus their energies on the multilateral process that is underway at the Organization for Economic Cooperation and Development."

8
Jul

The Office of the U.S. Trade Representative issued a sixth list of product exclusions from Section 301 tariffs on goods from China. Newly exempt from the tariffs are "110 specially prepared product descriptions," the agency said. The exclusions cover 362 separate requests, according to the notice, which is scheduled for publication in the July 9 Federal Register. The product exclusions apply retroactively to July 6, 2018, the date the first set of tariffs took effect, and will remain in effect until one year after the notice is published.

29
Jun

President Donald Trump said he won't lift current U.S. tariffs, but also won't add tariffs on any more Chinese imports "for at least the time being." He said during a press conference at the G20 Summit in Japan that negotiations will resume "where we left off to see if we can make a deal."

Trump said while the issues around Huawei will have to be saved "for the very end," U.S. companies will be allowed to sell to Huawei in the meantime. And Trump said China is going to start buying farm products almost immediately. "We're going to give them lists of things we would like them to buy."

20
Jun

The Office of the U.S. Trade Representative will begin accepting exclusion requests for the third tranche of Section 301 tariffs through a new portal on June 30 at noon, the agency said in a notice. The exclusion requests will be due through the portal at exclusions.ustr.gov/ by Sept. 30, with responses due 14 days after the request is posted on the portal, USTR said. Exclusions will be effective going back to Sept. 24, 2018, when the tariffs on $200 billion in goods from China were implemented with a 10 percent tariff.

7
Jun

President Donald Trump said the tariffs on goods from Mexico that were set to begin on June 10 will not take effect on that date after a deal was reached between the two countries. "I am pleased to inform you that The United States of America has reached a signed agreement with Mexico," Trump said in a tweet. "The Tariffs scheduled to be implemented by the U.S. on Monday, against Mexico, are hereby indefinitely suspended."

7
Jun

The Court of Appeals for the Federal Circuit on June 7 reversed a lower court decision that found Ford’s use of tariff engineering legitimate to secure a lower duty rate on its imported cargo vans. CAFC held that, while post-importation activities such as the removal of passenger seats are irrelevant to classification, the relevant tariff subheading for “vehicles principally designed for the transport of persons” suggests some consideration of use. The van’s design features, including shoddy passenger seats, suggest they are intended for use as cargo vans of heading 8704, and subject to a higher duty rate, the Federal Circuit said.

3
Jun

The Office of the U.S. Trade Representative issued a fifth list of product exclusions from Section 301 tariffs on goods from China. Newly exempt from the tariffs is one 10-digit subheading, 8537.10.8000, in its entirety, as well as "88 specially prepared product descriptions." The exclusions cover 464 separate requests, according to the notice, which is scheduled for publication in the June 4 Federal Register. The product exclusions apply retroactively to July 6, 2018, the date the first set of tariffs took effect, and will remain in effect until one year after the notice is published.

31
May

Chinese imports subject to the third tranche of Section 301 tariffs that were on the water as of May 10 will stay at the 10 percent tariff rate through June 15. Originally, the tariffs were set to rise to 25 percent for entries on or after June 1. There will be a notice in the Federal Register next week, USTR said after hours May 31. "This limited extension will further account for customs enforcement factors and the transit time between China and the United States by sea," the press release said.

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31
May

India will be removed from the Generalized System of Preferences on June 5, because President Donald Trump "determined that India has not assured the United States that India will provide equitable and reasonable access to its markets." The announcement came just after 8 p.m. on May 31. The end of GSP eligibility and removal of India's developing country status also means India will be subject to safeguard duties on solar cells and washing machines as of June 5.

"Only a year after the Senate and House passed a three year reauthorization of GSP by a near unanimous margin, the Trump administration has kicked out the GSP country that saves American companies more money than any other," said Coalition for GSP Executive Director Dan Anthony. "The administration made today’s decision in the face of opposition from members of Congress and hundreds of American businesses that have called for continued GSP eligibility for India." Anthony said India's exit from GSP will mean importers will pay more than $300 million a year in new duties.

30
May

A five percent tariff will be imposed on “all goods coming into our Country from Mexico” beginning June 10, and will remain in place “until such time as illegal migrants coming through Mexico, and into our Country, STOP,” President Donald Trump said May 30 on Twitter. The tariff will “gradually increase until the Illegal Immigration problem is remedied,” he said. “Details from the White House to follow.”

29
May

The Commerce Department will set a retroactive antidumping duty cash deposit rate of 1,731.75 percent on some imports of Chinese mattresses, according to a pre-publication version of a preliminary determination issued May 29. The unusually high rate will apply to mattresses imported from the “China-wide entity,” i.e., all Chinese companies that didn’t certify they are independent of Chinese government control or producer-exporter combinations that weren't assigned an individual rate. The rate will also be retroactive to 90 days prior to the eventual publication date of Commerce’s notice. Commerce set rates ranging from 38.56% to 84.64% for other Chinese companies, with some of those duties retroactive as well, it said in a fact sheet .

Email ITTNews@warren-news.com for a copy of the notice.

17
May

Turkish exports are no longer eligible for the Generalized System of Preferences, and Turkish solar cells and residential washers are also now subject to safeguard tariffs. The changes took effect May 17.

The president announced just after 8 p.m. on May 16 that Turkey is no longer a developing country, and is therefore leaving GSP and no longer eligible for safeguard exemptions. Although the U.S. Trade Representative announced that both Turkey and India would be terminated from GSP back in March, India is still in the GSP program.

The White House also announced that the 50 percent Section 232 tariff on Turkish steel since Aug. 13, widely seen as punishment for the jailing of an American citizen, will return to 25 percent on May 21. The president said that Turkish steel imports fell 48 percent in 2018, and since domestic steel utilization has improved to 80 percent, the rate can be reduced.

17
May

President Donald Trump said May 17 said the U.S. has also reached an agreement with Mexico to drop U.S. Section 232 tariffs. The Mexican government issued a statement that said it would be lifting all its retaliatory tariffs in response. Mexico had targeted U.S. pork, dairy and metals. Mexican President Andres Lopez Obrador noted in the statement that this agreement will allow the countries to move forward with ratifying the new NAFTA, which is known in that country as the Treaty between Mexico, the United States and Canada, or T-MEC, for the Spanish acronym. The Mexican statement did not say how quickly the tariffs and retaliatory tariffs would be lifted. A joint statement from Canada and the U.S. said tariffs would end under a similar agreement within 48 hours.

17
May

The 25 percent Section 232 tariffs on Canadian steel and the 10 percent tariffs on aluminum will be removed within 48 hours, Canada and the U.S. said May 17. When the metals tariffs are removed, Canada will also roll back its retaliatory tariffs, which hit American metals and agriculture, as well as some prepared food. The joint statement said stricter customs enforcement to prevent transshipment will be coordinated between Canada and the U.S.

Moreover, the U.S. and Canada will monitor whether there is a surge in any particular steel or aluminum product, and will consult with the exporting country if there is one. In determining whether any tariff is warranted due to the surge, the countries will treat products poured or melted within the NAFTA region differently than those that were processed in the NAFTA region but poured overseas. Currently, products that undergo substantial transformation within a country are given that country's rule of origin, so downstream producers could have a price advantage if they import dumped metal before producing the specific item.

If consultations are not successful, either the U.S. or Canada can return to a 25 percent tariff on that steel product facing a surge of imports or a 10 percent tariff on that aluminum product that has had a surge of imports. The exporting country's retaliation would have to be limited to steel or aluminum.

17
May

President Donald Trump issued a proclamation saying that he may take action under Section 232 to restrict auto and auto part imports if negotiations with the European Union and Japan don't make way for higher sales for American carmakers.

The president said that innovations in electrification, making vehicles lighter, engines and powertrains, autonomous driving and "advanced connectivity" in the auto sector "are essential to maintaining our military superiority."

The proclamation did not say whether the actions would target all auto related imports outside the NAFTA region and Korea, or whether quotas or tariffs would be needed on certain products. It did not say what level of tariffs is necessary. But the EU, Japan and "any other country the U.S. Trade Representative deems appropriate" have 180 days to find a solution to mitigate the threat to national security, the proclamation said. It said that the Korea-U.S. renegotiation and the renegotiated NAFTA "could help to address" the threat.

13
May

The Office of the U.S. Trade Representative has published a list of "essentially all products not currently covered" by Section 301 tariffs, with the exception of pharmaceuticals, certain chemicals made into prescription drugs, rare earth minerals and critical minerals. The office is seeking public comment on hiking tariffs on these goods, which represented approximately $300 billion in imports last year.

Product exclusions previously granted will still be spared the additional 25 percent duty, the USTR said. The office said it might add tariffs of up to 25 percent on 3,805 full and partial tariff subheadings. Toys, apparel, home goods, shoes, electronics, sporting goods, chemicals and child safety seats are all on the list.

The notice also addresses how foreign-trade zones are treated. "Any merchandise subject to the increased tariffs admitted into a U.S. foreign trade zone on or after the effective date of the increased tariffs, except those eligible for admission under 'domestic status' as defined in 19 CFR 146.43, would have to be admitted as 'privileged foreign status' as defined in 19 CFR 146.41, and would be subject upon entry for consumption to the additional duty."

Written comments are due by June 17. On that date, the Section 301 Committee will convene a public hearing at the International Trade Commission.

10
May

Importers with goods exported to the U.S. prior to May 10 will be able to avoid the increased Section 301 duties on goods from China as long as the merchandise is entered before June 1, CBP said in an updated CSMS message. "Such products remain subject to the additional duty of 10 percent for a transitional period of time before June 1, 2019," said the U.S. Trade Representative in a notice. "The covered products of China that are entered into the United States on or after June 1, 2019, are subject to the 25 percent rate of additional duty.

CBP said importers should use the HTS subheading 9903.88.09 for goods that were exported before May 10 and entered before June 1, and not subject to the increased Section 301 duties on goods from China. The USTR also said that duty rate at the time goods that were previously admitted into a foreign-trade zone with "Privileged Foreign" status still applies.

9
May

The Office of the U.S. Trade Representative issued a fourth list of product exclusions from Section 301 tariffs on goods from China. The exclusions cover "515 separate exclusion requests" including five 10-digit subheadings that cover 86 separate requests and "35 specially prepared product descriptions" that cover 429 separate requests, according to a pre-publication copy of a notice posted to the agency’s website May 9. The product exclusions apply retroactively to July 6, 2018, the date the first set of tariffs took effect, and will remain in effect until one year after USTR publishes the notice in the Federal Register.

8
May

The Office of the U.S. Trade Representative is set to publish on May 9 a notice on the increase in Section 301 tariffs for the third tranche of goods from China. The tariffs will go from 10 percent to 25 percent for the third list of goods from China at 12:01 a.m. on May 10, the USTR said. That increase was previously delayed while negotiations with China were underway. China's Vice Premier Liu He will be in Washington for further discussions this week "to make a deal," President Donald Trump said in a May 8 tweet.

5
May

The third tranche of Section 301 tariffs on goods from China will go up to 25 percent on May 10, President Donald Trump tweeted on May 5. "For 10 months, China has been paying Tariffs to the USA of 25% on 50 Billion Dollars of High Tech, and 10% on 200 Billion Dollars of other goods," he said. "These payments are partially responsible for our great economic results. The 10% will go up to 25% on Friday. " That increase was previously set to take place at the beginning of 2019, but was pushed back as the U.S. and China negotiated.

Trump also said $325 billion worth of "additional goods sent to us by China remain untaxed, but will be shortly, at a rate of 25%. The Tariffs paid to the USA have had little impact on product cost, mostly borne by China. The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!"

2
May

U.S. Trade Representative Robert Lighthizer said there will be an exclusion process for the third tranche of Section 301 tariffs on products from China and that the agency has "begun preparations to launch a process by the end of the month." His comment came in written replies submitted in recent weeks to Rep. Suzan DelBene, D-Wash., after a House Ways and Means Committee appearance in February. He had previously argued no exclusions were needed for the 10 percent tariffs despite urging from Congress.

18
Apr

The National Association of Manufacturers filed a lawsuit with the Court of International Trade over new regulations that prevent drawback for goods subject to excise taxes. Among other arguments in the April 17 filing, the association said the drawback changes related to excise taxes, which were implemented as part of a general overhaul of drawback under the Trade Facilitation and Trade Enforcement Act, go against the expressed aim of lawmakers. The court should vacate the rule's excise tax drawback provisions, said NAM.

Email ITTNews@warren-news.com for a copy of the complaint.

18
Apr

The International Trade Commission released its estimate of the economic effect of revisions to NAFTA, one of the steps necessary for a vote in Congress under Trade Promotion Authority. Because there are few tariff changes in the U.S.-Mexico-Canada Agreement, economists focused on the advances in digital trade and job growth due to tighter auto rules of origin. Across the economy, the ITC estimated that ratifying USMCA would lead to an additional 176,000 jobs, a 0.12 percent increase.

Senate Finance Committee Chairman Chuck Grassley told reporters April 18, before the report was released, that he didn't think its conclusions would change the conversation in Congress around ratification.

The revised NAFTA would increase trade with Mexico and Canada by about 5 percent, the ITC estimated. There would be $19.1 billion more exports to Canada and $19.1 billion more imports from Canada. There would be $14.2 billion more exports to Mexico and $12.4 billion more imports from Mexico. All these changes would happen by year six after ratification. There are five years of transition for the auto rules of origin.

16
Apr

The Office of the U.S. Trade Representative issued a third list of product exclusions from Section 301 tariffs on goods from China. The exclusions are "reflected in 21 specially prepared product descriptions, which cover 348 separate exclusion requests," according to a pre-publication copy of a notice posted to the agency’s website April 15. The product exclusions apply retroactively to July 6, 2018, the date the first set of tariffs took effect, and will remain in effect until one year after USTR publishes the notice in the Federal Register.

25
Mar

The Court of International Trade on March 25 denied a bid to declare Section 232 tariffs unconstitutional in a lawsuit brought by the American Institute of International Steel and other steel importers. A 1976 Supreme Court decision had found Section 232 to be a permissible delegation by Congress of its tariffs-setting powers to the president, and while the three judge CIT panel expressed some concerns, they were “beyond this court’s power to address, given the Supreme Court’s decision,” CIT said. Judge Gary Katzmann penned a separate “dubitante” – a step below a dissent -- noting that, while he agreed that the trade court could not deviate from the Supreme Court’s ruling, he had “grave doubts” about its real world implications.

20
Mar

The Office of the U.S. Trade Representative issued another list of product exclusions from Section 301 tariffs on goods from China, granting full or partial exemptions for 87 separate exclusion requests, according to a pre-publication copy of a notice posted to the agency’s website March 20. The product exclusions apply retroactively to July 6, 2018, the date the first set of tariffs took effect, and will remain in effect until one year after USTR publishes the notice in the Federal Register.

4
Mar

India, the biggest recipient of the Generalized System of Preferences, will be terminated from the program after the mandatory 60-day waiting period, because it is not providing "equitable and reasonable access to its markets in numerous sectors," the U.S. Trade Representative announced Monday evening. Turkey, which is the fifth-largest beneficiary of the program, is being terminated because its economy has developed sufficiently that it should no longer benefit from preferential market access, USTR said.

In 2017, the total imports covered by GSP were worth $21.2 billion; Indian products accounted for $5.6 billion, and Turkish products were valued at $1.7 billion. Almost 12 percent of India's exports to the U.S. are covered by GSP. The medical device interest group and dairy exporters have been asking for India's removal from GSP since October 2017.

President Donald Trump notified Congress March 4, and once the governments of India and Turkey are notified, and after the waiting period, the termination will be enacted by a presidential proclamation.

24
Feb

President Donald Trump will again postpone an increase to Section 301 tariffs on China that had been set to take effect March 1, he said Feb. 24 in a pair of tweets. The delay comes as a result of “substantial progress in our trade talks with China on important structural issues including intellectual property protection, technology transfer, agriculture, services, currency, and many other issues,” he said.

The tariffs, which cover $200 billion in Chinese imports, had been set to increase from the current 10 percent duty to 25 percent. The deadline for the increase was originally Jan. 1, but Trump and Chinese President Xi Jinping agreed in December to push the effective date to March 1 to allow time for negotiations.

Trump tweeted that he intends meet Xi to broker a final deal, though he gave no date for the meeting or for the new tariff deadline. “Assuming both sides make additional progress, we will be planning a Summit for President Xi and myself, at Mar-a-Lago, to conclude an agreement,” he said. “A very good weekend for U.S. & China!”