The following lawsuits were filed at the Court of International Trade during the weeks of Nov. 6-12, 13-19 and 20-26:
Section 301 Tariffs
Section 301 Tariffs are levied under the Trade Act of 1974 which grants the Office of the United States Trade Representative (USTR) authority to investigate and take action to protect U.S. rights from trade agreements and respond to foreign trade practices. Section 301 of the Trade Act of 1974 provides statutory means allowing the United States to impose sanctions on foreign countries violating U.S. trade agreements or engaging in acts that are “unjustifiable” or “unreasonable” and burdensome to U.S. commerce. Prior to 1995, the U.S. frequently used Section 301 to eliminate trade barriers and pressure other countries to open markets to U.S. goods.
The founding of the World Trade Organization in 1995 created an enforceable dispute settlement mechanism, reducing U.S. use of Section 301. The Trump Administration began using Section 301 in 2018 to unilaterally enforce tariffs on countries and industries it deemed unfair to U.S. industries. The Trump Administration adopted the policy shift to close what it deemed a persistent "trade gap" between the U.S. and foreign governments that it said disadvantaged U.S. firms. Additionally, it pointed to alleged weaknesses in the WTO trade dispute settlement process to justify many of its tariff actions—particularly against China. The administration also cited failures in previous trade agreements to enhance foreign market access for U.S. firms and workers.
The Trump Administration launched a Section 301 investigation into Chinese trade policies in August 2017. Following the investigation, President Trump ordered the USTR to take five tariff actions between 2018 and 2019. Almost three quarters of U.S. imports from China were subject to Section 301 tariffs, which ranged from 15% to 25%. The U.S. and China engaged in negotiations resulting in the “U.S.-China Phase One Trade Agreement”, signed in January 2020.
The Biden Administration took steps in 2021 to eliminate foreign policies subject to Section 301 investigations. The administration has extended and reinstated many of the tariffs enacted during the Trump administration but is conducting a review of all Section 301 actions against China.
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 text of a recent letter sent to the White House by Sens. Sherrod Brown, D-Ohio, and Bob Casey, D-Pa., suggests that they have been told there will be reductions in Section 301 tariffs, and they said in the letter that they have serious concerns that these reductions "will enable China and other global competitors to resume their anti-competitive activities without consequences. While not the subject of interagency review, we share similar concerns about reductions in 232 tariffs, as well as related actions that would undermine American steel and aluminum producers as a result of negotiations with the European Union on the Global Arrangement on Sustainable Steel and Aluminum."
China is the country of origin for Lexmark printers imported from Mexico for both Section 301 trade duties and country of origin marking, CBP said in a recently released ruling. CBP found that the printer transports incorporated into the printer, which were made in China, were critical for the printer to feed the paper and to print copies, and were the component that imparted essential character, rather than the printed circuit board assemblies, which were assembled in Mexico.
Twenty of Florida's 28 representatives, led by Democrat Rep. Debbie Wasserman Schultz and Republican Mario Díaz-Balart, are calling on the House Ways and Means Committee to reinstate the Generalized System of Preferences benefits program, which expired almost three years ago.
Eliminating permanent normal trade relations (PNTR) with China would “leave a lasting scar” on the U.S. economy, costing each U.S. household $11,000 in real income over the period 2024 to 2028 and reducing competition and efficiency over the long term, according to a report released by the U.S.-China Business Council on Nov. 9.
The chairman and top Democrat on the House Select Committee on China asked U.S. Trade Representative Katherine Tai to consider launching a new Section 301 investigation for autos, in order to examine the harm that China's subsidization and technology transfer practices could do if Chinese electric vehicles start entering the U.S. in large numbers.
The New Democrat Coalition, a caucus of pro-free trade Democrats, publicly released a letter to the president asking him to change course on trade, and work on traditional free trade agreements that lower tariffs and go through congressional approval. President Joe Biden has declined to work on any trade-liberalizing FTAs, saying that deals that can be negotiated more quickly that address supply chains, trade facilitation and other non-tariff barriers are more fit for today's challenges.
NEW YORK -- Apparel industry lobbyist David Spooner, speaking at the U.S. Fashion Industry Association annual conference, said employees of the Office of the U.S. Trade Representative have indicated to him that the office "might actually sunset some of the tariffs," and that importers will be able to apply for a new product exclusion. "Hopefully this is the case," he added.
A new Silverado Policy Accelerator report says not enough attention has been paid to China's production of mature or legacy semiconductors -- a category the paper calls "foundational" -- and the authors say ceding this market to China "would have significant national and economic security implications."