Derek Scissors, a China scholar at the American Enterprise Institute, has been arguing for decoupling from China for years. He says whether President Donald Trump wins a second term, or a Democrat replaces him, it's likely tech companies will have to change their supply chains and reverse the international approach to research and development. Scissors said in an interview that while apparel and other low-value goods manufacturers were already moving to cheaper countries in Asia, consumer technology firms were happy in China before the trade war began. "You could easily get a Democratic administration that wants to get tech out of China," he said. "Biden's people say they want that."

A bill barring use of the International Economic Emergency Powers Act as grounds for imposing import tariffs or quotas on another country cleared the Senate Homeland Security and Government Affairs Committee without fanfare before the August congressional recess. Sens. Tom Carper, D-Del., and Pat Toomey, R-Pa., introduced S-2413 with six co-sponsors. To stem the influx of migrants at the southern border, President Donald Trump threatened in May to use his authority under the 1977 statute to impose 5 percent tariffs on Mexican imports starting June 10, and hike them by 5 points monthly to 25 percent on Oct. 1 if the border crisis persisted (see 1905310014). Trump lifted the threat days later, not before the U.S. Chamber of Commerce threatened litigation challenging his IEEPA authority to levy the import duties against Mexico (see 1906080001). No U.S. president in history has invoked IEEPA to impose tariffs on the imports of another country.

Even at only 10 percent, the List 4 Section 301 tariffs due to take effect Sept. 1 on up to $300 billion worth of Chinese imports (see 1908010059) “would have a much larger impact on the U.S. tech sector” than the previous three rounds of 25 percent duties, said an S&P Global Ratings report Monday. The List 4 tariffs would “significantly raise costs for manufacturers and prices for consumers,” much more than current tariffs, it said.

Even at only 10 percent, the List 4 Section 301 tariffs due to take effect Sept. 1 on up to $300 billion worth of Chinese imports (see 1908010059) “would have a much larger impact on the U.S. tech sector” than the previous three rounds of 25 percent duties, said an S&P Global Ratings report Monday. The List 4 tariffs would “significantly raise costs for manufacturers and prices for consumers,” much more than current tariffs, it said.

Even at only 10 percent, the List 4 Section 301 tariffs due to take effect Sept. 1 on up to $300 billion worth of Chinese imports (see 1908010059) “would have a much larger impact on the U.S. tech sector” than the previous three rounds of 25 percent duties, said an S&P Global Ratings report Monday. The List 4 tariffs would “significantly raise costs for manufacturers and prices for consumers,” much more than current tariffs, it said.

Even at only 10 percent, the List 4 Section 301 tariffs due to take effect Sept. 1 on up to $300 billion worth of Chinese imports “would have a much larger impact on the U.S. tech sector” than the previous three rounds of 25 percent duties, an Aug. 5 S&P Global Ratings report said. The List 4 tariffs would “significantly raise costs for manufacturers and prices for consumers,” much more so than the current tariffs, it said.

Freshman Democrat Stephanie Murphy of Florida is already making a name for herself on trade, both during House Ways and Means Committee hearings and through leading an effort to restrict the administration's ability to levy tariffs on national security grounds without congressional approval.

2019 is shaping up to be another active year in terms of changes to the Harmonized Tariff Schedule. Like last year, a series of revisions were necessary in the first half of the year to implement Section 301 exemptions and an increase for $200 billion worth of the China tariffs from 10 percent to 25 percent. Other major changes are related to the Generalized System of Preferences, and in particular the removal of India and Turkey from the program. In all, seven revisions were issued prior to the mid-year Revision 8, as follows:

Element Electronics, which assembles LCD TVs in Winnsboro, South Carolina, for sale through Walmart, Target and Costco, hasn’t “taken a position” on whether Section 301 tariffs should be slapped on finished TVs from China, General Counsel David Baer told a List 4 hearing June 17, according to a newly posted transcript. Baer spoke at the hearing to urge the removal from List 4 of the LCD panels and motherboards Element sources from China. Even when those goods weren't being considered for tariffs on List 1, Baer appeared at a May 2018 hearing to argue for finished TVs from China to be assessed 25 percent tariffs. Section 301 tariffs have “the potential to level the playing field for Element's U.S. work force and workers across America,” said Baer then. “Element supports the inclusion of finished TVs in the scope of the 301.” Baer said Element had an unfair disadvantage against competitors that imported finished TVs from China at 3.9 percent duties and sourced them from Mexico duty-free, versus the 4.5 percent tariffs it pays to import LCD modules from China. Baer didn’t respond to emails Tuesday seeking comment on why the company changed its position about tariffs on finished TVs from China. List 4 includes proposed tariffs on finished TVs, plus the LCD components Element sources from China.

House Ways and Means Trade Subcommittee Chairman Earl Blumenauer said he thinks the House could be able to have a vote in the fall on the new NAFTA. Blumenauer, from Oregon and one of nine House Democrats who are tasked with negotiating changes to the deal with U.S. Trade Representative Robert Lighthizer, said he expects the group will meet with USTR "at least once a week." Speaking at a Washington International Trade Association event June 26, he joked that Lighthizer spends so much time meeting with House members and caucuses, "I think he travels the world just to get away from us." Lighthizer is on his way to Osaka, Japan, for the G-20 meeting. He met with the working group the afternoon before he left.