A controversial electric vehicle purchase tax credit (see 2203010064) that was limited to cars and trucks assembled in U.S. plants by union workers has been changed to a tax credit that says the vehicle has to have final assembly in North America. Purchases of new clean vehicles (they can include fuel cells, not just EVs) are eligible for a $7,500 tax credit for buyers whose joint income is below $300,000 or an individual taxpayer with a modified adjusted gross income of $150,000 or less.
Although President Joe Biden criticized President Donald Trump's China tariffs on the campaign trail, Peterson Institute for International Economics Senior Fellow Chad Bown said he always thought it was unlikely Biden would roll any of them back, because there are "huge political costs" to doing so, because opponents could label you as "weak on China."
The Interagency Committee on Trade in Timber Products from Peru told CBP to continue to block timber imports from Inversiones WCA E.I.R.L. (WCA), a Peruvian exporter, because a Peruvian investigation found that WCA is selling illegally harvested timber. The ban began two years ago.
Trade groups that represent semiconductor manufacturers and customers lauded the Senate's passage of incentives for domestic manufacturing, while unions and a union-funded advocacy group both praised the bill and said trade provisions that were not included still need to pass.
Senate Majority Leader Chuck Schumer, D-N.Y., speaking on the floor of the Senate just before the CHIPS bill passed, said he wants the conference committee for the House and Senate China packages to continue negotiating.
Commerce Secretary Gina Raimondo acknowledged that lifting Section 301 tariffs is one of the few levers the White House has to lower inflation right now, but implied that President Joe Biden is hesitating because unions are arguing it would hurt workers.
Importers of finished goods and manufacturing inputs told the International Trade Commission across three days of testimony that the Section 301 tariffs are damaging profit margins, and in some cases lead to layoffs. But some unions and manufacturers said the Section 301 tariffs are deserved for Chinese abuses, and with the tariffs in place, the goods they make are more competitive. The International Trade Commission is studying the efficacy of Section 301 and Section 232 tariffs, and their economic impact.
Across three days of testimony July 20-22, the International Trade Commission heard from dozens of companies, trade groups and advocacy groups about the economic impact of Section 301 tariffs and Section 232 tariffs and quotas. The tariffs and quotas on metals inspired fewer witnesses than the China tariffs, but they were no less emphatic.The United Steelworkers said they strongly supported the tariffs and asked that they remain strong. Pete Trinidad, president of a USW local that represents 3,500 steel workers in Indiana, argued that the tariffs had either a small or no measurable effect on prices, according to a think tank study.
Sens. Gary Peters, D-Mich., and John Cornyn, R-Texas, introduced a bill July 20 that would require 90% or more of commercial vehicles to go through non-intrusive inspection at ports of entry by the end of fiscal year 2024.
A bill that will eliminate tariffs on imported baby formula through the end of the year passed the Senate July 21 after passing the House last week, and the tariffs will be lifted the same day the president signs it into law.