The implementation of new tariffs on uranium appears improbable despite the initiation of an investigation of possible trade restrictions under Section 232 (see 1807180029), said Kristoffer Inton, a stock research analyst with Morningstar. "We think it’s unlikely a tariff will be enacted, as we see little merit in the arguments laid out by Energy Fuels and Ur-Energy," he said in a research report on Canadian uranium company Cameco. "First, the key reason production from Kazakhstan has grown so much over the last decade is because it simply is home to low-cost uranium deposits," Inton said. "Roughly 12% of global reserves are found in Kazakhstan, second only to Australia." Also, "national security concerns seem unfounded given that the global uranium market is in oversupply and given that the two companies filing the petition claim that they can scale-up production quickly, if needed," he said. "Additionally, uranium could come from underfeeding, re-enrichment, or from Japan’s built-up inventory until mines expand production. This would seem to minimize concerns about a potential uranium shortage in the U.S."

June retail sales increased 0.07 percent, seasonally adjusted, from May and were up 4.2 percent unadjusted from June 2017, “as economic growth continued despite the U.S. trade war with China and other countries," the National Retail Federation said July 16. “This is a healthy retail sales report and consistent with underlying economic momentum that has fueled a steady run of retail sales increases,” NRF said. “The big question is whether households can continue this spending pace.” The trade war is “the big risk to the outlook,” NRF said. It fears trade frictions with China and others “could raise prices while reducing consumer confidence and household buying power,” it said. June retail sales at electronics and appliance stores were below those of other consumer sectors, rising 1.6 percent year-over-year, but declining 0.4 percent, seasonally adjusted, from May, NRF said. Overall online and other non-store sales in June were up 7.3 percent from a year earlier and up 1.3 percent from May, it said. NRF is standing by its forecast that 2018 retail sales will grow by between 3.8 percent and 4.4 percent over 2017, it said.

E-commerce has largely avoided the broad new tariffs on goods from China and steel and aluminum, eBay said in a July 16 blog post. "So far, the impact on consumer goods has been relatively limited," the company said. "But with supply chains that are more globally integrated than ever, the real impact of these actions may not be clear for some time. Meanwhile, the federal [government relations] team is engaging with policy makers every day telling the story of small businesses that are trading globally and talking about the importance of free trade."

A Display Supply Chain Consultants analysis of International Trade Commission data found the firm’s initial read that the Chinese-sourced display product lines targeted July 10 for proposed 10 percent Trade Act Section 301 tariffs (see 1807110055) accounted for minuscule import shipments in 2017, DSCC President Bob O’Brien told us. Of the 21 Harmonized Tariff Schedule (HTS) product codes listed in the Office of the U.S. Trade Representative notice under the “8528" heading for displays, only four of those classifications of imports had customs values exceeding $1 million last year for all countries of origin, including China, O’Brien said.

If the Chinese tariffs situation “continues to become a problem,” Voxx International late this fiscal year “quite possibly” will move “certain” manufacturing of printed circuit boards from contract OEM factories in China to one of its own facilities in Orlando, CEO Pat Lavelle said on a July 11 earnings call. Lavelle sees that as the only factor that would significantly impact Voxx capital expenditures for the year, he said. On the “first tranche” of tariffs that took effect July 6, Voxx was able to move “some production” to Taiwan from China “without having the impact” of the higher duties, Lavelle said. Voxx also was able to “reclass” certain products with approval of CBP, “and we were able to get around the individual tariffs there,” he said. “The ones that we’ve gotten hit on are basically lower-value products,” including cables and remotes, he said. The administration proposed additional tariffs on July 10.

Squire Patton compiled "a comprehensive and searchable tool documenting newly imposed tariffs, listed tariff line by tariff line worldwide," it said in a July 10 news release. The tariff book is meant as a resource "where companies can search thousands of products -- some of which to date are only documented on foreign government web sites, including some not in English -- to determine whether supply chains have been affected by US tariffs, as well as retaliatory tariffs from international trading partners," the law firm said. Frank Samolis, co-chair of firm’s International Trade Practice, said "the stakes are high for any company producing, importing or exporting a product." The firm will be updating the list as necessary, it said.

Importers may need to up their customs bond amounts after the Section 301 25 percent tariffs take effect on goods from China, said Laura Siegel Rabinowitz, special counsel at Kelley Drye, in a June 28 blog post. "While bonds are based on imports for the previous twelve months, the time period is rolling and we expect CBP to be aggressively reviewing imports from China beginning on July 6," she said. Rabinowitz said that after "the Section 232 duties on imported steel and aluminum went into effect recently, CBP sent letters to certain importers giving them thirty days to increase their bonds to be commensurate with the new tariffs."

The Coalition of American Metal Manufacturers and Users updated its "comprehensive list of retaliatory tariffs" that now applies as of June 18. The list covers retaliatory tariffs, either currently in effect or proposed, from Canada, China, the European Union, India and Mexico. "Other countries including Japan, Russia and Turkey have warned of potential retaliation but have not announced formal tariffs," the group said. Turkey released a list of potential tariffs in May. Russia is reportedly close to issuing a list of retaliatory tariffs. The tariffs are in response to Section 232 tariffs on U.S. imports of steel and aluminum.

Among the newest list of proposed HTS subheadings to be subject to 25 percent Section 301 tariffs (see 1806210029) are electric scooters, a product that's helped fuel rapid growth of short-term scooter rental companies in the U.S., Flexport noted in a June 21 blog post. Import data for the last year shows "goods qualifying as 8711.60.00 added up to nearly $670 million worth of scooters brought into the U.S.," Flexport's communications director Parker Ward said. "Had these 25% tariffs been in place during the same time period, this would have added an additional $170MM in supply chain costs for scooter importers."

The Trump administration appears likely to follow through with its threat of adding 10 percent Section 301 tariffs on $200 billion worth of Chinese goods (see 1806180058), Ethan Harris, coordinator for Global Economics at Bank of America Merrill Lynch Research, said in a June 20 research report. "Further escalation seems likely," he said. "Once the dust settles on the $50bn in tit-for-tat tariffs between the US and China, we expect the Trump administration to follow through with $100-$200bn in additional tariffs and we expect China to respond in kind. Because China imports less from the US, as they move into this next round they will likely raise tariffs by a higher percentage amount and/or adopt non-tariff retaliatory measures."