Squire Patton compiled "a comprehensive and searchable tool documenting newly imposed tariffs, listed tariff line by tariff line worldwide," it said in a July 10 news release. The tariff book is meant as a resource "where companies can search thousands of products -- some of which to date are only documented on foreign government web sites, including some not in English -- to determine whether supply chains have been affected by US tariffs, as well as retaliatory tariffs from international trading partners," the law firm said. Frank Samolis, co-chair of firm’s International Trade Practice, said "the stakes are high for any company producing, importing or exporting a product." The firm will be updating the list as necessary, it said.
Importers may need to up their customs bond amounts after the Section 301 25 percent tariffs take effect on goods from China, said Laura Siegel Rabinowitz, special counsel at Kelley Drye, in a June 28 blog post. "While bonds are based on imports for the previous twelve months, the time period is rolling and we expect CBP to be aggressively reviewing imports from China beginning on July 6," she said. Rabinowitz said that after "the Section 232 duties on imported steel and aluminum went into effect recently, CBP sent letters to certain importers giving them thirty days to increase their bonds to be commensurate with the new tariffs."
The Coalition of American Metal Manufacturers and Users updated its "comprehensive list of retaliatory tariffs" that now applies as of June 18. The list covers retaliatory tariffs, either currently in effect or proposed, from Canada, China, the European Union, India and Mexico. "Other countries including Japan, Russia and Turkey have warned of potential retaliation but have not announced formal tariffs," the group said. Turkey released a list of potential tariffs in May. Russia is reportedly close to issuing a list of retaliatory tariffs. The tariffs are in response to Section 232 tariffs on U.S. imports of steel and aluminum.
The Trump administration appears likely to follow through with its threat of adding 10 percent Section 301 tariffs on $200 billion worth of Chinese goods (see 1806180058), Ethan Harris, coordinator for Global Economics at Bank of America Merrill Lynch Research, said in a June 20 research report. "Further escalation seems likely," he said. "Once the dust settles on the $50bn in tit-for-tat tariffs between the US and China, we expect the Trump administration to follow through with $100-$200bn in additional tariffs and we expect China to respond in kind. Because China imports less from the US, as they move into this next round they will likely raise tariffs by a higher percentage amount and/or adopt non-tariff retaliatory measures."
Among the newest list of proposed HTS subheadings to be subject to 25 percent Section 301 tariffs (see 1806210029) are electric scooters, a product that's helped fuel rapid growth of short-term scooter rental companies in the U.S., Flexport noted in a June 21 blog post. Import data for the last year shows "goods qualifying as 8711.60.00 added up to nearly $670 million worth of scooters brought into the U.S.," Flexport's communications director Parker Ward said. "Had these 25% tariffs been in place during the same time period, this would have added an additional $170MM in supply chain costs for scooter importers."
New absolute quotas on imported steel and aluminum should concern customs brokers due to added liability issues, said International Bond & Marine, a surety that underwrites customs bonds, in a post on its website. "The burden of complying with quota windows often falls squarely on the shoulders of the broker," it said. "Today it’s aluminum and steel, tomorrow it may be different commodities." If a broker misses a quota and the U.S. prevents entry, "clients may pursue legal action against the broker," the company said. Such an error "could make the broker liable for other consequential losses such as shipping costs, storage charges, and loss of market," it said.
Importers should be reviewing options toward reducing the impact of any of the Section 301 tariffs on goods from China, Baker & McKenzie lawyer Ted Murphy said in a June 19 blog post. President Donald Trump on June 18 announced plans for 10 percent duties on $200 billion worth of goods from China (see 1806180058) if China moves forward on planned retaliations to the initial Section 301 tariffs (see 1806150028). "While there is still time for the two countries to reach a negotiated settlement and avoid a trade war (the first tranche of duties does not go into effect until July 6th), that does not appear likely, at this point," Murphy said.
International Trade Systems purchased VelaTrack for an undisclosed amount, ITS said in a news release. The deal allows ITS, a customs clearance and freight management solutions company, to offer "visibility of shipments including the ability to track origin, destination and transit airport events," it said. "Customers will now be able to manage estimated times of departure and arrival as well as transshipment schedules."
Most of the computer, aviation and automotive, electrical and machinery products that will be hit by tariffs under Section 301 are produced by foreign companies operating in China, according to an updated study from the Peterson Institute for International Economics. The think tank says it aims to do "truth telling about the benefits of globalization" as well as study labor market adjustment due to globalization and how to find a sustainable growth model for mature economies.
The Coalition of American Metal Manufacturers and Users posted a "comprehensive list of retaliatory tariffs" as of June 11. The list covers retaliatory tariffs, either currently in effect or proposed, from Canada, China, the European Union, India and Mexico. "Other countries including Japan, Russia and Turkey have warned of potential retaliation but have not announced formal tariffs," the group said. The tariffs are in response to Section 232 tariffs on U.S. imports of steel and aluminum. The Mexican tariffs took effect on June 5 (see 1806050041), while Canada's take effect July 1 and the EU's on June 20 (see 1806010022). China's tariffs took effect April 2, and India's take effect on June 21.