The country of origin for imported components of the "Nikola’s Tre Bev, class 8, battery-electric semi-truck" is the U.S. for government procurement purposes, as the parts undergo a substantial transformation when assembled into an electric truck, CBP said. The components lose their individual identity and become an "integral part" of a new article with a new name, character and use.
An amendment that senators had hoped to attach to the Federal Aviation Administration reauthorization bill, which would have temporarily removed the 15% tariff on imported titanium sponge (see 2405080012), didn't make it into the bill, which passed the Senate May 9.
Bloomberg reported that the White House will release the Section 301 tariffs review next week, with higher tariffs on electric vehicles, batteries and solar cells. The report said it's unclear if there will be any tariff reductions, "though large-scale reductions aren’t expected."
While the U.S. should look to counter China with export controls, tariffs and outbound investment restrictions, it also needs to better incentivize trading partners to diversify their supply chains away from China, the Atlantic Council said this week.
The Court of International Trade ruled May 9 that an importer would recoup 22.4% of Section 301 duties it paid on an entry of kids’ erasable e-writing tablets from China.
Trade groups, companies and a union that represent the aluminum and steel sectors told the Office of the U.S. Trade Representative that they need more protection from import competition, by expansion of the scope of Section 232 tariffs, and by re-negotiation of the rules of origin in both trade agreements and the Section 232 exclusion for Canada and Mexico.
The Commerce Department on May 8 released its quarterly update to its annual list of foreign-government subsidies on imported articles of cheese subject to an in-quota rate of duty Oct. 1, 2023, through Dec. 31, 2023. The agency again found that only Canada is providing subsidies, in the form of export assistance.
Sens. Catherine Cortez-Masto, D-Nev., and Marsha Blackburn, R-Tenn., would like to get a removal of the tariff on titanium sponge attached to the must-pass Federal Aviation Administration authorization bill. There is a 15% tariff on titanium sponge. Timet, a Nevada company, once tried to get quotas applied to titanium sponge imports through a Section 232 action (see 2002280047) and also had a failed trade remedy case; it no longer makes titanium sponge.
Former Sen. Chris Dodd, special presidential adviser for the Americas, said that the administration welcomes the Americas Act (see 2403060033), a bill that proposes setting country-by-country de minimis levels, and instructs the administration to reconsider U.S. tariffs "with the focus on the principle of reciprocity" for most favored nation rates and to open a dialogue with Mexico and Canada on allowing Costa Rica and Uruguay to join USMCA. It also would exclude Chinese and Russian shippers from de minimis eligibility, allow Ecuador and Uruguay to use Caribbean Basin Trade Partnership Act tariff benefits for certain goods, "with the goal of an eventual full-scale FTA with Uruguay and Ecuador," and asks the administration to make it so goods across Western hemisphere free trade agreements could cumulate among those agreements -- so Costa Rican content could be added to Colombian and Mexican content, for instance.
Rep. Adrian Smith, R-Neb., said that despite Democratic opposition in the House Ways and Means Committee to a package of bills renewing and altering the Generalized System of Preferences benefits program, he expects there will be enough support for the bill to pass under suspension of the rules, which requires two-thirds of the House. Most bills this year have passed under suspension of the rules, rather than with a rule fashioned by the very narrow Republican majority. Smith said GSP works well to get its beneficiary countries to treat U.S. exports more favorably.