President Donald Trump threatened, in a tweet April 23, to match European Union tariffs on motorcycles, as he reacted to Harley-Davidson corporate earnings news. He wrote: "Harley Davidson has struggled with Tariffs with the EU, currently paying 31%. They’ve had to move production overseas to try and offset some of that Tariff that they’ve been hit with which will rise to 66% in June of 2021. So unfair to U.S. We will Reciprocate!" As free-trade advocates noted on Twitter, the EU tariff is one of the tariffs that was raised because of the U.S.'s Section 232 tariffs on aluminum and steel.
The director of the White House's Council of Economic Advisors, Larry Kudlow, said "a lot of headway" is being made in trade negotiations with China, and that there's discussion of another trip to continue in-person negotiations. "We're not there yet, but we've made a heck of a lot of progress," he said at a National Press Club luncheon April 23. "I don't want to make a prediction or a forecast" on reaching a resolution, he said. "Will we succeed? I don't know. We're a heck of a lot closer than we were. Sometimes it goes hot and cold."
The U.S. and China are aiming to reach a trade agreement by early May and sign it later that month, according to an April 17 report by Bloomberg. U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are expected to travel to Beijing in late April, according to the report, followed by a Washington visit from Chinese Vice Premier Liu He the next week. During that visit, officials hope to announce a trade agreement, Bloomberg reported.
President Donald Trump, speaking at an April 15 rally designed to celebrate the tax law's changes, continued to threaten the European Union with car taxes if it doesn't change its policies. "We're in massive trade negotiations, as you know, because our farmers haven't been treated properly for many years," he said. He then said negotiations with China are going well, but said the EU needs to recognize things are different now.
The suggestion that the U.S. could shut down the ports of entry at the Mexican border "is an applause line, but it's not an idea," House Speaker Nancy Pelosi said at an event hosted by Politico on April 2. She said she would hope there would be enough maturity at the White House not to make the threat a reality. President Donald Trump, speaking to reporters at the White House later in the day, both reiterated the threat and softened his tone on the likelihood of it happening. While he said that if Congress doesn't make a deal to stop the practice he called "catch and release," "the border's going to be closed -- 100 percent." But he also said that Mexico has started to prevent more Central Americans from crossing their territory into the United States.
The U.S. Chamber of Commerce said April 1 that closing the U.S.-Mexico border "would inflict severe economic harm" on the country, and that even threatening closure is damaging. March 29 marked the third time President Donald Trump has threatened to close the border. The first time, it was because of Central American migrants. The second time, it was because he was angry Democrats wouldn't fund a border wall (see 1812280006). This time, again, it's because of Central American migrants. He tweeted, "If Mexico doesn’t immediately stop ALL illegal immigration coming into the United States throug [sic] our Southern Border, I will be CLOSING..... ....the Border, or large sections of the Border, next week. This would be so easy for Mexico to do, but they just take our money and 'talk.' Besides, we lose so much money with them, especially when you add in drug trafficking etc.), that the Border closing would be a good thing!"
In a brief round of questions before boarding a helicopter March 20, President Donald Trump said the Commerce Department's Section 232 report on auto imports had no recommendation. It's possible he misunderstood the question and instead was describing his own position, which is yet to be determined. "It's up for review, and the European Union has been very tough on the United States for many years but nobody talked about it. And so we're looking at something to combat it," he told reporters. When a second reporter asked him if he was leaning toward tariffs on European cars, he said, "We'll see whether or not they negotiate a deal. If they negotiate a deal, a fair deal, that's a different story."
The U.S. and Brazil will initiate a mutual recognition agreement for trusted trader programs between the two countries at the instructions of President Donald Trump and President Jair Bolsonaro of Brazil, the White House said in a March 19 announcement. An MRA "will reduce costs for American and Brazilian companies," it said. Brazil will also "implement a tariff rate quota, allowing for the annual importation of 750 thousand tons of American wheat at zero rate," the White House said. The U.S. will also "expeditiously schedule a technical visit" by the Food Safety and Inspection Service "to audit Brazil’s raw beef inspection system, as soon as it is satisfied with Brazil’s food safety documentation," the White House said. "Commensurate with its status as a global leader, President Bolsonaro agreed that Brazil will begin to forgo special and differential treatment in World Trade Organization negotiations, in line with the United States proposal," the White House said.
Broad descriptions of the budget for trade-related operations show the administration would like to spend more on enforcement, and would like to collect more fees from travelers and traders. The submissions, released March 11, for fiscal year 2020, asked for $9 million more for the Bureau of Industry and Security -- slightly more than last year's requested increase. "The Budget increases resources to support the Department of Commerce's membership in the Committee on Foreign Investment in the United States (CFIUS), the summary said. "The Budget includes $16 million to support the President’s robust trade agenda," the summary said, including implementing the John S. McCain National Defense Authorization Act of 2019, which asked Commerce to identify emerging technologies that should be subject to export controls. The summary said the administration wants to establish "a new initiative within the International Trade Administration to counter the circumvention or evasion of U.S. trade actions aimed at those who engage in unfair and illegal trade practices."
The Congressional Research Service evaluated whether President Donald Trump can unilaterally withdraw from NAFTA, as he has threatened to do to force a vote on its replacement. Their assessment -- a 19-page report -- boils down to probably not. Mexico and Canada could not challenge such a move, the researchers said, because of the text's provisions about withdrawal. But whether U.S. law would allow it is ambiguous, they said, and any such proclamation would end up in court.