The Office of the U.S. Trade Representative has published a list of "essentially all products not currently covered" by Section 301 tariffs, with the exception of pharmaceuticals, certain chemicals made into prescription drugs, rare earth minerals and critical minerals. The office is seeking public comment on hiking tariffs on these goods, which represented approximately $300 billion in imports last year.
Importers with goods exported to the U.S. prior to May 10 will be able to avoid the increased Section 301 duties on goods from China as long as the merchandise is entered before June 1, CBP said in an updated CSMS message. "Such products remain subject to the additional duty of 10 percent for a transitional period of time before June 1, 2019," said the U.S. Trade Representative in a notice. "The covered products of China that are entered into the United States on or after June 1, 2019, are subject to the 25 percent rate of additional duty.
The Office of the U.S. Trade Representative issued a fourth list of product exclusions from Section 301 tariffs on goods from China. The exclusions cover "515 separate exclusion requests" including five 10-digit subheadings that cover 86 separate requests and "35 specially prepared product descriptions" that cover 429 separate requests, according to a pre-publication copy of a notice posted to the agency’s website May 9. The product exclusions apply retroactively to July 6, 2018, the date the first set of tariffs took effect, and will remain in effect until one year after USTR publishes the notice in the Federal Register.
The Office of the U.S. Trade Representative is set to publish on May 9 a notice on the increase in Section 301 tariffs for the third tranche of goods from China. The tariffs will go from 10 percent to 25 percent for the third list of goods from China at 12:01 a.m. on May 10, the USTR said. That increase was previously delayed while negotiations with China were underway. China's Vice Premier Liu He will be in Washington for further discussions this week "to make a deal," President Donald Trump said in a May 8 tweet.
The third tranche of Section 301 tariffs on goods from China will go up to 25 percent on May 10, President Donald Trump tweeted on May 5. "For 10 months, China has been paying Tariffs to the USA of 25% on 50 Billion Dollars of High Tech, and 10% on 200 Billion Dollars of other goods," he said. "These payments are partially responsible for our great economic results. The 10% will go up to 25% on Friday. " That increase was previously set to take place at the beginning of 2019, but was pushed back as the U.S. and China negotiated.
U.S. Trade Representative Robert Lighthizer said there will be an exclusion process for the third tranche of Section 301 tariffs on products from China and that the agency has "begun preparations to launch a process by the end of the month." His comment came in written replies submitted in recent weeks to Rep. Suzan DelBene, D-Wash., after a House Ways and Means Committee appearance in February. He had previously argued no exclusions were needed for the 10 percent tariffs despite urging from Congress.
The International Trade Commission released its estimate of the economic effect of revisions to NAFTA, one of the steps necessary for a vote in Congress under Trade Promotion Authority. Because there are few tariff changes in the U.S.-Mexico-Canada Agreement, economists focused on the advances in digital trade and job growth due to tighter auto rules of origin. Across the economy, the ITC estimated that ratifying USMCA would lead to an additional 176,000 jobs, a 0.12 percent increase.
The National Association of Manufacturers filed a lawsuit with the Court of International Trade over new regulations that prevent drawback for goods subject to excise taxes. Among other arguments in the April 17 filing, the association said the drawback changes related to excise taxes, which were implemented as part of a general overhaul of drawback under the Trade Facilitation and Trade Enforcement Act, go against the expressed aim of lawmakers. The court should vacate the rule's excise tax drawback provisions, said NAM.
The Office of the U.S. Trade Representative issued a third list of product exclusions from Section 301 tariffs on goods from China. The exclusions are "reflected in 21 specially prepared product descriptions, which cover 348 separate exclusion requests," according to a pre-publication copy of a notice posted to the agency’s website April 15. The product exclusions apply retroactively to July 6, 2018, the date the first set of tariffs took effect, and will remain in effect until one year after USTR publishes the notice in the Federal Register.
The Court of International Trade on March 25 denied a bid to declare Section 232 tariffs unconstitutional in a lawsuit brought by the American Institute of International Steel and other steel importers. A 1976 Supreme Court decision had found Section 232 to be a permissible delegation by Congress of its tariffs-setting powers to the president, and while the three judge CIT panel expressed some concerns, they were “beyond this court’s power to address, given the Supreme Court’s decision,” CIT said. Judge Gary Katzmann penned a separate “dubitante” – a step below a dissent -- noting that, while he agreed that the trade court could not deviate from the Supreme Court’s ruling, he had “grave doubts” about its real world implications.