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."

New absolute quotas on imported steel and aluminum should concern customs brokers due to added liability issues, said International Bond & Marine, a surety that underwrites customs bonds, in a post on its website. "The burden of complying with quota windows often falls squarely on the shoulders of the broker," it said. "Today it’s aluminum and steel, tomorrow it may be different commodities." If a broker misses a quota and the U.S. prevents entry, "clients may pursue legal action against the broker," the company said. Such an error "could make the broker liable for other consequential losses such as shipping costs, storage charges, and loss of market," it said.

International Trade Systems purchased VelaTrack for an undisclosed amount, ITS said in a news release. The deal allows ITS, a customs clearance and freight management solutions company, to offer "visibility of shipments including the ability to track origin, destination and transit airport events," it said. "Customers will now be able to manage estimated times of departure and arrival as well as transshipment schedules."

Importers should be reviewing options toward reducing the impact of any of the Section 301 tariffs on goods from China, Baker & McKenzie lawyer Ted Murphy said in a June 19 blog post. President Donald Trump on June 18 announced plans for 10 percent duties on $200 billion worth of goods from China (see 1806180058) if China moves forward on planned retaliations to the initial Section 301 tariffs (see 1806150028). "While there is still time for the two countries to reach a negotiated settlement and avoid a trade war (the first tranche of duties does not go into effect until July 6th), that does not appear likely, at this point," Murphy said.

Most of the computer, aviation and automotive, electrical and machinery products that will be hit by tariffs under Section 301 are produced by foreign companies operating in China, according to an updated study from the Peterson Institute for International Economics. The think tank says it aims to do "truth telling about the benefits of globalization" as well as study labor market adjustment due to globalization and how to find a sustainable growth model for mature economies.

The Coalition of American Metal Manufacturers and Users posted a "comprehensive list of retaliatory tariffs" as of June 11. 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. The tariffs are in response to Section 232 tariffs on U.S. imports of steel and aluminum. The Mexican tariffs took effect on June 5 (see 1806050041), while Canada's take effect July 1 and the EU's on June 20 (see 1806010022). China's tariffs took effect April 2, and India's take effect on June 21.

The European Union's General Data Protection Regulation (GDPR) may limit the applications of blockchain within international trade, the Venable law firm said in an alert. "One unintended consequence of the GDPR, which became enforceable on May 25, is that it creates serious legal uncertainties for companies that are developing and/or considering whether to implement potential blockchain applications for the supply chain," it said. Because GDPR limits the use of personal data records and blockchain technology is inherently difficult to alter, the regulations raise "numerous legal questions regarding the possible use of blockchain for supply chain applications," Venable said. " For example, using blockchain to transmit bills of lading would help prevent fraudulent transactions; however, a bill of lading may contain personal data." There may be "opportunities to make the case to EU authorities that additional clarity and flexibility is needed to 'future proof' the GDPR so as to allow for the use of blockchain and other new technologies that have the potential to yield immense benefits to global supply chains and enhance global economic growth," the law firm said.

Imports at major U.S. retail container ports are expected to set record volumes this summer and fall, despite the Trump administration’s threat to impose tariffs on $50 million worth of goods from China, the National Retail Federation said in a news release. “Consumers are buying more and that means retailers are importing more,” the NRF said. “Imports continue to be the primary source of high-quality, mass-produced necessities at affordable prices and will be for the foreseeable future. If tariffs are imposed on consumer goods, that will only drive up prices for American families while doing little or nothing to punish those responsible for unfair trade practices.” The report estimates U.S. ports handled 1.63 million 20-foot-long cargo containers or their equivalents in April, which was down 5.8 percent sequentially from March and up 0.3 percent year-over-year. It estimates ports handled 1.77 million containers in May, up 1.3 percent year-over-year. It forecasts monthly year-over-year increases averaging nearly 4 percent from June through October.

The National Customs Brokers & Forwarders Association of America suggested that members review the new European Union privacy rules that took effect May 25 and consider developing a compliance policy. The General Data Protection Regulation (GDPR) is meant to protect the personal data of those in the EU. "The GDPR applies to all companies and organizations that offer services or products to EU residents," the NCBFAA said in an email to members. "Even if you have no offices in the EU, no members in the EU and no meetings in the EU, if you transact business there or send promotional materials to EU residents, you are probably covered by the GDPR."

The planned Section 301 tariffs on $50 billion in goods from China are "decades overdue," said Coalition for a Prosperous America Chairman Dan DiMicco in a news release on the White House announcement that the tariffs will go forward (see 1805290024). "We appreciate that President Trump is now making clear that the age of appeasement for China’s trade cheating is at an end," DiMicco said.