House Majority Leader Steny Hoyer, D-Md., argues that the America Competes Act and the U.S. Innovation and Competition Act, the House and Senate legislation to confront economic competition with China, differ in significant ways but have the "same core principles."
Almost half of the Senate's Republicans and a third of its Democrats are asking U.S. Trade Representative Katherine Tai to open an exclusion process for all importers of Chinese goods covered by Section 301 tariffs, and to presumptively exclude any product of which nearly all the imports are coming from China. Lead authors Sen. Rob Portman, R-Ohio, and Sen. Tom Carper, D-Del., say that if importers haven't moved out of China after years of higher tariffs, that "suggests that moving these supply chains out of China is uniquely unlikely, and that our efforts to diversify production locales and reshore manufacturing would be better spent on other products."
The Biden administration will allow 1.25 million metric tons of steel to enter under a tariff rate quota, it said Feb. 7, as long as those products are melted and poured in Japan. That would be more than the U.S. imported from Japan in 2019 and 2020, and more than last year -- preliminary data says that the U.S. imported about 989,000 metric tons of steel from Japan in 2021.
The tariff on most imported solar panels will drop to 14.75% at 12:01 a.m. on Feb. 7, and bifacial solar panels will continue to be exempt from the global safeguard, a presidential proclamation Feb. 4 says. The tariff rate quota threshold for solar cells will also double from 2.5 GW to 5 GW, making it unlikely any imported cells will be subject to the tariff.
The threshold for tariff rate quotas will double to 5 GW per year under a four-year extension of Section 201 safeguard tariffs announced by presidential proclamation Feb. 4. The ITC has said imports during the first four years of the safeguard never exceeded the previous 2.5 GW threshold in the first four years the safeguard was in effect, making it unlikely that enough cells will be imported to be subject to the tariffs. Bifacial solar panels will continue to be excluded from the safeguard.
The House passed its China package, the America Competes Act, on a nearly party-line vote, with one Democrat dissenting and one Republican voting for it. The America Competes Act and the Senate's U.S. Innovation and Competition Act both propose subsidizing American semiconductor manufacturing and both propose investing in science research to better counter China's play for technological dominance, but the House version spends far more money and includes some priorities that the Senate did not, such as $2 billion annually for climate change foreign assistance and a generous reauthorization of Trade Adjustment Assistance. The vote was 221-210.
The rapid response mechanism of USMCA overturned the initial union election at the General Motors pickup truck plant in Silao, Mexico, and despite Democrats' concern that the election would also be marred by intimidation (see 2201280018), workers overwhelmingly chose an independent union. The AFL-CIO issued a statement that said: "Together, in a democratic union, workers will advocate for higher wages and improved health and safety standards at the Silao facility, helping to set new standards in the automobile industry. The election itself set a hard-won precedent and came only after workers voted to throw out a previous contract that had poor benefits and was negotiated without the workers’ input. Workers overcame gross intimidation and election meddling, and their triumph is an example of what happens when workers stand together. This vote represents a rejection of the past and a new era for Mexican workers’ right to associate freely."
Sen. Marco Rubio, R-Fla., announced he is introducing a bill that would make U.S. companies liable for statements "that excuse the genocide in Xinjiang" or other statements that advance Chinese propaganda efforts, and would make it illegal to invest in core Chinese Communist Party activities. He says these actions would be subject to the Foreign Corrupt Practices Act, unless companies could explain that their actions were not made to gain or retain market access. Traditionally, the FCPA has been used to prosecute the offering of bribes by U.S. persons or firms in foreign countries.
The U.S. Chamber of Commerce hopes to be able to support the House China package, since the trade group supported the U.S. Innovation and Competition Act, but said the House bill "continues to include numerous policies that would undermine U.S. competitiveness, and Members are being denied the opportunity to vote on amendments to address these issues." The Chamber said it will push during the conference process to get better bill.
Panelists at a Washington International Trade Association conference Feb. 2 said they're not sure when the supply chain crisis will ease, noting the U.S. brought a record number of containers into the country last year. Jonathan Gold, the National Retail Federation's vice president for supply chains, said he expects the amount to be even higher in 2022.