Section 301 tariff costs motivated a third of global supply chain “leaders” to move sourcing out of China or to make plans to do so in the next three years, Gartner reported June 24. Gartner, a research and advisory company, canvassed 260 fulfillment companies and contract manufacturers in February and March and found COVID-19 was “only one of several disruptions that have put global supply chains under pressure,” it said. The U.S.-China trade war “made supply chain leaders aware of the weaknesses of their globalized supply chains and question the logic of heavily outsourced, concentrated and interdependent networks,” Gartner said. China for decades was the “go-to destination for high-quality, low-cost manufacturing,” but the tariffs abruptly changed that profile, it said. The Section 301 duties raised supply chain costs by up to 10% for more than 40% of respondents, it said. For more than a quarter of them, “the impact has been even higher,” it said. Vietnam, India and Mexico are top alternative countries of origin. The desire to make supply networks more “resilient” is the second main motivator behind tariffs chasing companies out of China, it said.

A coalition of unions and nonprofits, including Public Citizen, sent a letter June 26 to the director of Mexico's Human Rights Commission, asking her to intervene in the detention of Mexican labor lawyer Susana Prieto Terrazas. “Ms. Prieto’s detention is casting a pall over the proposed July 1, 2020 start of the revised North American Free Trade Agreement,” they said, and noted that the U.S. trade representative, when he was asked about it during congressional testimony, called the arrest a “bad indicator” of Mexican intentions to comply with tougher labor standards.

Amazon set up a new Counterfeit Crimes Unit meant to reduce the number of fake products sold on the platform, the company said in a June 24 news release. “The Counterfeit Crimes Unit enables Amazon to more effectively pursue civil litigation against suspected criminals, work with brands in joint or independent investigations, and aid law enforcement officials worldwide in criminal actions against counterfeiters. Amazon welcomes the partnership of brands and law enforcement in the shared objective of stopping counterfeiters and holding them accountable,” it said. Amazon said the “global team” is “made up of former federal prosecutors, experienced investigators, and data analysts.” The availability of counterfeits on e-commerce platforms is facing scrutiny from the Trump administration (see 2004290052) and lawmakers (see 2003040040).

Reimposing Section 232 tariffs on Canadian aluminum “would be a major mistake,” National Foreign Trade Council President Rufus Yerxa said June 24. “It would completely undermine the spirit of our newly-negotiated” U.S.-Mexico-Canada Agreement and “reignite trade tensions with our biggest trading partner. It will also hurt the most dynamic U.S. manufacturers in sectors like autos, food products and construction, all in a vain effort to prop up inefficient domestic aluminum producers by branding Canada a national security threat.” He said the administration should recognize that levying taxes on aluminum from Canada “would undermine our credibility as a reliable trading partner, not just with Canada, but with other potential free trade partners like the U.K. and Japan.”

The U.S. Chamber of Commerce and the Aluminum Association reacted with dismay June 23 to a Bloomberg report that the U.S. could re-impose 10% tariffs on Canadian aluminum on July 1, because of an alleged surge in imports since tariffs were lifted. The U.S. trade representative told senators last week that he is in consultations with Canada on the issue.

The U.S. in April imported more laptops and tablets than in any previous April in the category's history, according to Census Bureau data accessed June 15 through the International Trade Commission’s DataWeb tool. It was clear evidence of the surge in demand for work-from-home and remote-learning productivity tools after COVID-19 forced much of the U.S. into sudden lockdowns.

The National Customs Brokers & Forwarders Association of America will use Sandler Travis as its new customs counsel, the NCBFAA said in a June 16 news release by email. Lenny Feldman will serve as lead counsel within the firm, it said. Sandler Travis and Feldman replace Grunfeld Desiderio and Alan Klestadt, who were the NCBFAA's customs counsel for more than a dozen years, the association said.

Germany is benefiting from both its use of partial unemployment and its handling of the COVID-19 pandemic, and manufacturers in electronics, machinery and equipment and the auto sector are back to pre-crisis levels, according to Ludovic Subran, chief economist of Allianz. Subran, who was speaking on a June 9 webinar on globalization hosted by the American Institute for Contemporary German Studies at Johns Hopkins University, said German firms will have an edge over those in other countries that didn't keep workers employed during the shutdown measures taken to control the spread of the novel coronavirus that causes COVID-19.

The COVID-19 pandemic's impact on major U.S. retail container ports “appears to be easing slightly,” the National Retail Federation reported June 8. Projected imports through September are expected to remain below 2019 levels but not as low as forecast a month ago, it said: “It may still be too soon to say but we’ll take that as a sign that the situation could be slowly starting to improve. Consumers want to get back to shopping, and as more people get back to work, retailers want to be sure their shelves are stocked.” U.S. ports handled 1.61 million 20-foot-long cargo containers or their equivalents in April, NRF said. That was down 7.8% from a year earlier but up 17% from the four-year low in March and significantly better than the 1.51 million containers previously forecast. NRF estimates ports handled 1.58 million containers in May, down 14.6% year over year, but up from the 1.47 million containers forecast a month ago, it said. It’s forecasting June port activity will be 1.56 million containers handled, which would be down 12.9% from 2019, but up from the previous forecast of 1.46 million.

Sharply reduced April imports of the largest TVs were the result of COVID-19 factory shutdowns in Mexico, where the supply chain for big-screen sets predominantly resides, according to newly released Census Bureau data accessed June 6 through the International Trade Commission’s DataWeb tool. Mexican President Andrés Manuel López Obrador ordered the closure of nonessential factories and businesses on March 31.