A recently announced reduction in quotas on Brazilian semi-finished steel results in a reduction in the annual quota amount of about 10%, according to an annex, released Sept. 1, to the president’s earlier proclamation. Originally implemented as part of a deal with Brazil for the country to avoid Section 232 steel tariffs, the adjustment for decreased U.S. steel demand causes the quota for subheading 9903.80.57, which covers steel blooms, billets and slabs, semi-finished, to fall on an annual basis to 3,155,137,048 kg, down 350,570,783 kg from the original deal. The Office of the U.S. Trade Representative has said that, in terms of remaining quota amounts for the year, the reduction amounts to a decline from 350,000 metric tons (350,000,000 kg) to 60,000 metric tons (60,000,000 kg) (see 2008310010). The annex also implements in new subheading 9903.80.62 an exemption from the decreased quota amounts for covered products already contracted for purchase, provided that the decrease would result in a disruption, among other conditions.
In campaign material, both President Donald Trump and challenger Joe Biden say they want to bring critical supply chains back to America so the country isn't dependent on China for the production of critical goods. Biden's campaign says he wants to make a $400 billion procurement investment, and put more teeth in the Buy American policy. Trump says he wants there to be 100% expensing deductions allowed for robotics and pharmaceutical firms that reshore manufacturing in the U.S. He also says there will be no federal contracts for companies that outsource to China. Biden says he will “fix the harmful policies of the Trump administration” in tax and trade, but doesn't specify what he wants to change.
While many expect a President Joe Biden to be less protectionist than President Donald Trump, Michael Smart, a managing director at Rock Creek Global Advisors and former international trade counsel for Democrats on the Senate Finance Committee, wasn't ready to say that Biden would roll back tariffs on either China or Europe, though he did say that Biden wouldn't “go after the European Union” as Trump has. He said that a Trump or a Biden administration would have the same focus on expanding Buy American rules, which cover government procurement.
Correction: The July 14 executive order ending Hong Kong's special trade status doesn't result in Hong Kong goods being subject to Section 301 duties and antidumping and countervailing duties (see 2007150054).
The White House has not implemented a Buy American order that has been talked about for months (see 2004300046 and 2003110055), and now Joe Biden is proposing some of the same ideas in a white paper on making supply chains more resilient.
The Mexico Institute asked whether it was a mistake for Mexico's president to visit President Donald Trump four months ahead of Election Day, particularly since Trump has been so hostile to Mexican immigrants.
The Trump administration issued an advisory for companies doing business with China’s Xinjiang region, which could expose companies to sanctions, export controls and forced labor risks. In a 19-page guidance issued July 1, the departments of State, Commerce, the Treasury and Homeland Security describe supply chain risks and possible sanctions exposure for companies trading with the region, and includes suggested due diligence practices. The guidance comes less than a month after President Donald Trump authorized sanctions against Chinese officials for human rights violations against the country’s Uighur population in the Xinjiang region (see 2006170064).
The U.S. may add new tariffs on cars from the European Union unless the EU ends tariffs on U.S. lobsters, President Donald Trump said while speaking in Maine June 5. “European Union charges us a tariff; they don’t charge Canada a tariff,” Trump said. “This is for the press: So Canada doesn’t pay a tariff for the same exact lobster in the same waters, but we pay a tariff. If European Union doesn’t drop that tariff immediately, we’re going to put a tariff on their cars, which will be equivalent -- coming in -- come in for nothing, which is ridiculous.” Trump said White House adviser Peter Navarro would be in “charge of that one.” Navarro will “be the lobster king now,” Trump joked.
President Donald Trump issued an executive order May 19 to provide “regulatory relief” for companies during the COVID-19 pandemic, stressing that agencies should be fair when issuing enforcement decisions. Government agencies should modify, waive or provide exemptions for any regulations “that may inhibit economic recovery,” the order states, adding that agencies should abide by “principles of fairness.” The order emphasizes that agencies “bear the burden” of proving alleged violations of regulations and says enforcement actions should be “prompt and fair.” Penalties for violations should be “proportionate” and transparent, the order says, and liability for violations should be imposed “only for violations of statutes or duly issued regulations” with an opportunity for the penalized party to respond. “Agencies must be accountable for their administrative enforcement decisions,” the order says. The order says it does not apply to national security or homeland security functions of the U.S., except for “procurement actions and actions involving the import or export of non-defense articles and services.”
The Trump administration continues to seek some major changes to the Section 321 provisions that allow for streamlined customs processing for low-value shipments, said Megan Costello, a lobbyist with Sorini, Samet and Associates. Some in the administration want a total removal of the benefit, while others only want to make sure low-value shipments are subject to Section 301 tariffs, she said. Costello gave a presentation as part of the National Association of Foreign-Trade Zones virtual conference on May 13. An administration official said in April the Office of the U.S. Trade Representative was looking at how it can address some issues with the provisions (see 2004290052)