The following lawsuits were filed at the Court of International Trade during the weeks of Oct. 31 - Nov. 6 and Nov. 7-13:
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.
The U.S.-China Economic and Security Review Commission said that if China has not complied with its World Trade Organization accession provisions, Congress should pass a law "to immediately suspend China’s Permanent Normal Trade Relations" treatment, which would mean that Chinese imports would face higher base tariffs than from nearly all other countries. Then Congress should assess what conditions it would require to renew Chinese imports' eligibility for Most Favored Nation Tariffs, the commission said in its annual report, released Nov. 15.
NEW YORK -- At the U.S. Fashion Industry Association trade conference, the group's Washington counsel said that he believes there's a high likelihood that the Generalized System of Preferences benefits program and the Miscellaneous Tariff Bill will be passed before Congress goes home in December. USFIA President Julia Hughes added that because some of the members who are retiring are pro-trade, and they recognize that sentiment is waning in Congress, "that's gonna be an impetus to do something during the lame duck. Whether they're successful or not, that's not clear yet."
The following lawsuits were filed at the Court of International Trade during the week of Oct. 17-23:
Although President Joe Biden criticized the Trump administration tariffs on Chinese imports during his campaign, and although his treasury secretary repeatedly said they contribute to inflation and some of them are harmful, trade lobbyists for UPS and the U.S. Chamber of Commerce said the tariffs are largely here to stay.
The following lawsuits were filed at the Court of International Trade during the weeks of Oct. 3-9 and Oct. 10-16:
The Office of the U.S. Trade Representative is soliciting comments on how effective Section 301 tariffs on Chinese imports have been in convincing China to change its policies "related to technology transfer, intellectual property, and innovation" -- something USTR Katherine Tai has acknowledged the U.S. is not able to do.
U.S. Trade Representative Katherine Tai drew a distinction between 35% tariffs on Russian goods, which she said are designed to punish that country's war of aggression, and 25% (or 7.5%) tariffs on Chinese goods, which she said are not punishing tariffs.
More than a dozen amendments involving trade have been proposed for the National Defense Authorization Act, a bill the Senate passes every year, and is expected to take up in a lame-duck session after the November election.
The following lawsuits were filed at the Court of International Trade during the week of Sept. 26 - Oct. 2: