Importers paid more than $6 billion total in tariffs in October, the first full month that there were additional tariffs on $200 billion in Chinese goods, according to an analysis from Tariffs Hurt the Heartland. The group said that amount -- which is $3.1 billion more than was paid in October 2017 -- has not slowed imports on the tariffed goods, but has drastically cut exports that are subject to retaliatory tariffs. The group is funded in part by farm interests, who have been particularly hard-hit by retaliation. Their Dec. 7 release said that imports subject to new tariffs declined 0.6 percent in October, while exports targeted for retaliation fell 37 percent. About two-thirds of the increase is for Section 301 tariffs, while steel and aluminum tariffs cost an additional $446 million. The goods on the Section 301 list would have cost $394 million in tariffs before the action; in October, tariffs on those imports were $2.6 billion. CBP recently said it has assessed more than $10 billion under the recent Trump administration Section 201, 232 and 301 trade remedies (see 1811260010).

With the U.S. “on the cusp” of Section 301 tariffs scheduled to rise to 25 percent Jan. 1, 2019, on $200 billion worth of Chinese imports, President Donald Trump “has taken the authority that he does not have under the law” when he ordered the imposition of the duties, Consumer Technology Association President Gary Shapiro told the American Legislative Exchange Council’s States & Nation Policy Summit on Nov. 29. Speaking before an audience of mainly conservative state legislators, Shapiro stopped well short of threatening a CTA court challenge to block the higher tariffs from taking effect (see 1811090044).

The tariffs will hurt “thousands” of American tech companies, but also “our farmers and others as China is retaliating,” Shapiro said. “I travel around the world. I talk to government leaders. This is just not a China-U.S. issue. Every developed country in the world is concerned about this tariff war, which can not only lead us into a recession, but potentially a depression.” By imposing the tariffs, the administration is “going against” the American “brand of freedom” in trade and the “welcoming in” of foreign trade partners, Shapiro said. He conceded that China “is not a fair player, by the way. But raising tariffs, in our view, is not the way” to curb China’s unfair trade practices, he said. CTA didn’t comment.

Roanoke Trade released an online bond sufficiency calculator to help "determine the appropriate continuous customs import bond amount," the surety said in a blog post. Bond sufficiency issues have increased in recent months and are expected to continue due to the new tariffs (see 1808210029). The calculator can help importers predict bond sufficiency levels before CBP issues mandated bond increase notices. CBP issued 2,300 such notices in September, Roanoke said. The agency would typically issue fewer than 200 a month before the new tariffs were put in place, the surety said.

A coalition of almost 150 trade groups -- including multiple customs broker groups -- sent a letter to President Donald Trump Nov. 27 warning that the tariffs levied so far are damaging exports and that consumers will be bearing the brunt of additional tariffs, if they come. The letter notes that exports subject to retaliatory tariffs have dropped by 26 percent as of September, compared to September 2017, and that businesses paid more than $5.6 billion in tariffs in October, a more than 70 percent increase from October 2017. "Mr. President, we urge you to capitalize on your upcoming meeting with President Xi to reach an agreement that addresses China’s unfair trade practices and policies in order to remove the 2018 tariff increases, forgo the January 2019 tariff increase and avoid an additional round of tariffs on the remaining $267 billion worth of everyday consumer products and manufacturing inputs," wrote the coalition, which is known as Americans for Free Trade. "Millions of American farmers, business owners, companies, workers, and families are counting on you to make a deal."

Best Buy CEO Hubert Joly estimated that some 7 percent, or $2.3 billion, of the total cost of goods sold were affected by the 10 percent tariffs imposed at the end of September under Section 301, he said during a Nov. 20 Q3 earnings call. Many of the products on that list of goods were accessories, he said. Costs have been mitigated “in a variety of ways” and the impact affects a “very small portion of our business,” he said. Looking to Jan. 1, when tariffs are scheduled to rise to 25 percent, Joly said his personal view is that “the journey may not be linear, [but] the negotiations with China will progress,” and Best Buy is working with vendors to reduce the effects if tariffs do rise at the first of next year.

Cisco saw “immaterial” impact in its Q1 ended Oct. 27 from the 10 percent Section 301 tariffs that took effect Sept. 24 on $200 billion worth of Chinese imports, because the tariffs kicked in with only a month to go in the quarter, CEO Chuck Robbins said on a Nov. 14 earnings call. Though Cisco hiked prices on Chinese-sourced goods in Q1 to cover the higher tariff costs, it “saw absolutely no demand change” between the week before and the week after the price increases took effect, he said.

Imports at major U.S. retail container ports slowed in September from their “pre-holiday peak,” but stayed at “unusually high levels” as retailers continue bringing in merchandise before the Section 301 tariffs increase to 25 percent in January, the National Retail Federation said on Nov. 9. Retailers know that tariffs “are set to more than double in just a few weeks,” NRF said. “If there are shipments that can be moved up, it makes sense to do that before the price goes up.” Imports customarily drop off “significantly by this time of year, but we’re still seeing numbers that could have set records in the past,” NRF said. U.S. retail ports handled 1.87 million 20-foot containers or their equivalents in September, down 1.3 percent sequentially from August, but up 4.6 percent year-over-year, it said.

Thomson Reuters will acquire Integration Point for an undisclosed amount, the companies said in a news release. Integration Point is a global trade management provider. "Integration Point's technology platform will allow Thomson Reuters to provide a single, scalable GTM platform and serve customers with an enhanced trade-management solution," it said. Integration Point CEO Tom Barnes will give "transitional support" after the deal closes, and "Robert Bahash, head of business development for the Corporates customer market for Thomson Reuters, will lead the transition and operations of the business following the close," it said.

The United States Hide, Skin and Leather Association and the American Apparel and Footwear Association called for changes to the 9802 program, in an opinion piece in The Hill on Oct 14. Those groups say the value of a hide sent from America to China to be made into shoes should be deducted from the value subject to tariffs when a U.S. firm imports the shoes. Similarly, nylon yarn that will be made into fabric in India should be deducted from the value. "If a company uses a U.S. component that is further processed abroad before it is assembled into an article, it is disqualified," they explained, which means that yarn doesn't count, since it is made into fabric, nor do hides, which must be tanned before they're made into leather. There are no more tanneries in the U.S., so hides that will be in shoes, furniture or clothing are sent offshore unprocessed.

Voxx International expects soon to impose price increases to offset higher costs of Section 301 tariffs on Chinese imports, CEO Pat Lavelle said on an Oct. 11 earnings call. Printed circuit assemblies took an especially heavy hit among the items targeted with 10 percent tariffs that took effect Sept. 24 and are scheduled to rise to 25 percent on Jan. 1. Most of the products “within the competitive field” on which Voxx plays are sourced from China, but all manufacturers of similar ilk face the same challenges, he said. “I don't see anybody having a real distinct advantage based on where they're getting their product,” Lavelle said. “Most of it comes out of China. So as the tariffs come through, we will adjust our prices, our selling prices, and you'll see increases in prices. That is the game plan.”