Dozens of trade associations and 470 businesses, large and small, from around the country are asking the Trump administration to apply the duty deferral to all categories of tariffs, and to allow the deferral on imports that arrive in May and June. The coalition sent a letter, which also was sent to every member of Congress on April 28, that said: “While we understand the need to keep strong U.S. trade policies front and center, merely delaying the payment of these additional duties will not harm trade policy. The duties will still be paid, just at a later date.”
The Coalition for a Prosperous America sent a letter April 22 to the president arguing that textile workers benefit “from general tariff protection of 15-40% against low-wage foreign competition and trade cheating.” Companies that make automotive parts, ventilator parts, and glassware are hurt by foreign competitors when importers of those foreign goods don't have to pay tariffs for a few months, they said. “We know this crisis started in Wuhan, China. We know the Communist Party of China hid the virus from the world and from your administration. To now reward a cheap and below-market flood of Chinese imports only adds salt to the wounds of America’s workers,” the CPA wrote. And “we ask that no further import duty deferral or forgiveness be issued as a COVID remedy.”
Trade groups that represent importers are asking that restrictions to the products eligible for the Generalized System of Preferences benefits program from Thailand be delayed. The groups said in a letter to President Donald Trump that the changes, scheduled for April 25, “would increase costs for American employers [that] already are struggling to maintain employment levels in response to shutdowns and falling demand around the world” brought on by COVID-19 pandemic response measures. They asked for at least a six-month delay.
Export controls on masks used by medical workers -- an idea that had been floated (see 2004030063) -- have been averted, 3M announced the evening of April 6. The multinational company is producing 35 million masks a month in the U.S., and the president had said none of that production should be exported to Canada and Latin America, major recipients of that output. But now, the administration will address U.S. regulatory restrictions that prevented some Chinese masks from being used for medical workers, and 3M will import 166.5 million N95 masks, mostly from its China plant, over the next three months, the company said. “The plan will also enable 3M to continue sending U.S. produced respirators to Canada and Latin America, where 3M is the primary source of supply,” the press release noted.
The American Association of Exporters and Importers is asking the Trump administration to help importers and exporters deal with the impact of COVID-19 response measures, whether that impact is a cash crunch, the effects of telework or business decisions made in response to delays in shipments from China. The group is asking the administration to extend the time to respond to regulatory notices that are paper based, including entry filings deadlines, because telecommuting makes it more difficult to manage the paper flow. It is also asking CBP to extend the protest period for customs duties and decisions.
The U.S. and Canada will jointly be closing the border to travelers between the countries, but not cargo, President Donald Trump said in a March 18 tweet. “We will be, by mutual consent, temporarily closing our Northern Border with Canada to non-essential traffic,” he said. “Trade will not be affected. Details to follow!”
After a dinner in Florida attended by President Donald Trump and Brazilian President Jair Bolsanaro, the two issued a joint statement March 7 on how they would like to reach “a bilateral trade package this year.” Because Brazil is in Mercosur, a South American customs union, tariffs are unlikely to be part of such a deal. They also discussed expediting Brazil's participation in the Trusted Trader program, “to streamline commerce between both countries by ensuring the security and safety of imported goods, with a goal of program entry in 2021.”
At a press event during President Donald Trump's visit to India, both he and Prime Minister Narendra Modi were vague on how trade tensions might be eased between the two countries. A senior administration official said before the trip that India's announcement of higher tariffs precluded a mini-deal that would have restored India to the Generalized System of Preferences benefits program (see 2002210041). Trump said he'd been talking with Modi about how to forge an economic relationship “that is fair and reciprocal. Our teams have made tremendous progress on a comprehensive trade agreement and I’m optimistic we can reach a deal that will be of great importance to both countries.” He said U.S. exports to India are up nearly 60 percent since he took office.
Customs duties are estimated at $72 billion in the current fiscal year, and the White House projects that number will climb to $92 billion in the fiscal year that begins Oct. 1. It projects that duties then will fall to $54 billion the following year.
In his State of the Union address, President Donald Trump touted a “groundbreaking new agreement with China” without alluding to the work yet to get done in phase two, and said replacing NAFTA was a promise he kept. “Unfair trade is perhaps the single biggest reason that I decided to run for President,” he said, according to a White House transcript. “Six days ago, I replaced NAFTA and signed the brand-new U.S.-Mexico-Canada Agreement into law.” Trump “also promised our citizens that I would impose tariffs to confront China's massive theft of America’s jobs,” he said. “Our strategy has worked. Days ago, we signed the groundbreaking new agreement with China that will defend our workers, protect our intellectual property, bring billions and billions of dollars into our treasury, and open vast new markets for products made and grown right here in the USA.”