Two apparel trade experts said the Uyghur Forced Labor Prevention Act had a bigger impact on sourcing shifts than this year's trade war, but if the framework agreements with Guatemala and El Salvador turn into full agreements, the duty-free status for qualifying apparel from those countries could make a difference.
A notice from the Office of the U.S. Trade Representative to be published in the Federal Register Dec. 29 says that goods from Nicaragua that don't qualify for the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) should be entered beginning Jan. 1 under Harmonized Tariff Schedule heading 9903.89.01. That tariff number doesn't add any duty past the most-favored nation rate, but the goods also are subject to the reciprocal tariff of 18%, which is applied by HTS heading 9903.02.47.
The following lawsuits were filed at the Court of International Trade during the week of Dec. 15-21:
Importer Blue Sky the Color of Imagination filed a complaint on Dec. 22 in a customs case at the Court of International Trade on the classification of its planning calendars. The complaint comes on the heels of the U.S. Court of Appeals for the Federal Circuit rejecting the trade court's previous ruling in a separate case brought by Blue Sky that classified the importer's goods as diaries under Harmonized Tariff Schedule subheading 4820.10.2010 (see 2512040019) (Blue Sky the Color of Imagination v. United States, CIT # 22-00008).
International Trade Today is providing readers with the top stories from last week in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
The Office of the U.S. Trade Representative said that while China has been burdening U.S. commerce with its non-market practices to develop its semiconductor industry, it won't be hiking Section 301 tariffs on Chinese chips until June 2027.
The U.S. Trade Representative announced that it found that China's non-market practices in developing its semiconductor industry unreasonably burdens or restricts U.S. commerce, but said the current Section 301 tariff of 50% on Chinese semiconductors will remain in place, with no hike planned until June 23, 2027. The rate has not been set, and there will be a notice on the new rate at least 30 days ahead of the deadline, the notice said.
The Indonesian government sent Economy Minister Airlangga Hartarto to Washington, where he is expected to meet with U.S. Trade Representative Jamieson Greer before Christmas, in the hopes of finishing a trade deal before the New Year.
The top Democrat on the Senate Finance Committee, Sen. Ron Wyden of Oregon, criticized U.S. Trade Representative Jamieson Greer for the U.S.'s communique declaring that the era of most-favored nation tariff rates is over (see 2512160045). In a letter sent last week, Wyden said, "MFN has been integral to U.S. trade policy and a core principle of the international trading system for nearly 80 years, and it ensures that U.S. goods and services can compete on a level playing field in international markets without being targeted with unfair tariffs or regulations."
White House Chief Economic Adviser Kevin Hassett said that refunding tariffs paid by importers "would be very complicated." He said that those importers of record would then have to allocate that money to retailers.