The immediate past U.S. trade representative criticized an amendment attached to a China package which would renew the Miscellaneous Tariff Bill, and restart the exclusions for Section 301 tariffs on Chinese imports. The amendment, which got more than 90 votes in the Senate, also renews the Generalized System of Preferences benefits program, but Robert Lighthizer was silent on that aspect of the bill.

A bill that would establish both a carbon tax and a carbon border adjustment tax has been introduced in both the House and Senate. Rep. Marie Newman, D-Ill., said that the bill she sponsored "serves as one comprehensive plan to achieving critical reductions in greenhouse gas emissions while providing workers in declining energy sectors with a fair transition into new good-paying jobs. By investing in clean energy and embracing economy-wide carbon pricing, the plan will renew America’s leadership in technology and innovation while also building a sustainable future for all communities. "

Senate Finance Committee Chairman Ron Wyden, D-Ore., and House Ways and Means Committee Chairman Richard Neal, D-Mass., "are optimistic that a strong multilateral agreement can be reached to harmonize our international tax rules, end the race to the bottom and put a stop to digital services taxes," they said in a joint statement. The Office of the U.S. Trade Representative has threatened additional 25% tariffs on billions of dollars' worth of imports from European countries, Turkey and India over their proposed DSTs (see 2106020047), but has not implemented any of the Section 301 tariffs as the administration waits to see how negotiations go at both the G-7 and the Organization for Economic Cooperation and Development (OECD). Canadian Finance Minister Chrystia Freeland told reporters June 2, "The new US administration ... has taken an approach of compromise and I think that really does mean a deal is within reach." She said that in Canada's view it's important that both the global minimum corporate tax and DST be solved together. The New York Times reported that a Treasury Department official was optimistic about negotiations, as well. The newspaper said that the OECD's outgoing secretary general said it's possible a deal on both DSTs and global taxation could be reached in October.

A senator and a House member who sponsored the Uyghur Forced Labor Prevention Act in their respective chambers have asked the union that represents National Basketball Association players to consider the fact that Chinese sportswear companies Anta, Li-Ning and Peak use cotton grown in the Xinjang region. The U.S. blocks the importation of all cotton grown in Xinjiang because of the probability that it was planted or harvested with forced labor of Uyghur Muslims. The National Basketball Players Association didn't immediately comment.

Republican Rep. Adam Kinzinger of Illinois and Democratic Rep. Jason Crow of Colorado told an Atlantic Council online audience that the COVID-19 pandemic revealed an overdependence on China and Asia for essentials, and the need to bring more manufacturing back to the U.S. or North or Central America. The two introduced a bill this year that would offer incentives for relocating manufacturing to certain Western Hemisphere countries, and more generous incentives to bring manufacturing back to the U.S. (see 2105200049). Kinzinger said he thinks it has a great chance to become law.

Rep. Brett Guthrie, R-Ky., reintroduced a bill May 25 to permanently remove the 4.8% tariff on imported basketballs. Russell Brands of Bowling Green, Kentucky, has gotten leather basketballs repeatedly covered by the Miscellaneous Tariff Bill, saving about $50,000 in tariffs, but the MTB frequently expires and has a gap before it is retroactively renewed.

Sen. Lindsey Graham, R-S.C., has proposed that CBP be given the authority to exclude from entry into the U.S. any articles produced by a foreign firm that misappropriated a trade secret, when that theft has been proven by either a court or the International Trade Commission, under Section 337. The amendment, published May 24 in the Congressional Record, notes that the Section 337 process may not provide complete relief "because the foreign person has used or is reasonably likely to use the misappropriated trade secret in the home country of the foreign person or a third country."

The Endless Frontiers legislation continues to attract amendments relevant to trade, such as Sen. Josh Hawley's amendment, published May 24, that would make countries ineligible for participation in the Generalized System of Preferences benefits program if any product from that country is identified by the Bureau of International Labor Affairs as one made with child labor or forced labor. Hawley, R-Mo., also proposes that, starting 90 days after the bill's passage, there will be an additional 100% duty on all goods produced in Xinjiang, or goods with components from Xinjiang, for at least one year. At that time, the tariff would only be lifted if the administration "determines beyond a reasonable doubt that no slave labor, forced labor, indentured labor, or child labor exists in the People’s Republic of China; and submits to Congress and makes available to the public a report on that determination." There have been hundreds of amendments proposed for the China package, and Majority Leader Chuck Schumer will decide which ones deserve floor debate and a vote. He has said he wants a vote to happen this week.

Sens. Ted Cruz, R-Texas; Kevin Cramer, R-N.D.; and Tom Cotton, R-Ark., are criticizing the Biden administration's decision to rescind a Trump-era order that banned the importation of bulk power electrical equipment from China or other adversaries (see 2005040040). The Department of Energy “has a significant responsibility to protect the U.S. electric grid and help ensure that critical equipment supplied from foreign adversaries does not pose a risk to the national security of the citizens of the United States. While President [Joe] Biden’s CIA director recently acknowledged that China is 'formidable authoritarian adversary' your agency’s action does not appear to treat them as one,” the May 19 letter said.

Eight House members, four Democrats and four Republicans, wrote to U.S. Trade Representative Katherine Tai that five months of consultations is more than enough, and it's time to push for a binding resolution to the administration of dairy tariff rate quotas in Canada. Under the USMCA, the next steps could be Canada and the U.S. agreeing to conciliation or mediation, or the U.S. could call for a dispute settlement panel. Reps. Ron Kind, D-Wis.; Tom Reed, R-N.Y.; Antonio Delgado, D-N.Y.; Glenn Thompson, R-Pa.; Suzan DelBene, D-Wash.; Dusty Johnson, R-S.D.; Jim Costa, D-Calif.; and David Valadao, R-Calif., sent the letter May 21, and in it noted that Canada reserves part of its quotas for processors in Canada, a factor that undermines the ability of American dairy exporters to use the TRQs.