Although potential reciprocal tariff increases have been pushed back to Aug. 1, ocean spot rates between Asia and the U.S. West Coast have been falling, suggesting a relaxation in demand for shipping containers, according to two companies tracking ocean rates.
The Senate Appropriations Committee passed a bill to increase funding for the Office of the U.S. Trade Representative by $6 million, more than 10%, and to increase funding for the Bureau of Industry and Security, which handles Section 232 action, by $20 million -- almost 10%.
House Foreign Affairs Committee ranking member Rep. Gregory Meeks, D-N.Y., is trying to force votes in the House to end the emergency that justifies reciprocal tariffs and on a bill that would hike tariffs to 500% on Russian products.
Orange juice importers Johanna Foods and Johanna Beverage Company took to the Court of International Trade on July 18 to get declaratory and injunctive relief from President Donald Trump's threatened 50% tariffs on Brazilian goods. The importers argued that the tariffs, which are set to come into effect on Aug. 1, exceed Trump's authority under the International Emergency Economic Powers Act and represent an unconstitutional delegation of power (Johanna Foods v. United States, CIT # 25-00155).
U.S. retailers will move their supply chains out of Africa and into Asia should Congress not renew the African Growth and Opportunity Act or change the third-country fabric provision for the region, according to trade groups representing domestic U.S. apparel retailers.
For the countries outside America's top 30 or so trading partners, the U.S. likely will apply either 10% or 15% tariffs, President Donald Trump said in a telephone interview July 16.
The U.S. opposed two importers' bid to have the Supreme Court hear their challenge to the president's ability to impose tariffs under the International Emergency Economic Powers Act before the U.S. Court of Appeals for the D.C. Circuit has a chance to hear the case. The government argued that the high court shouldn't step in before either the D.C. Circuit or the U.S. Court of Appeals for the Federal Circuit has had a chance to address the claims against the IEEPA tariffs, particularly since both courts are hearing the appeals on very expedited timelines (Learning Resources v. Donald J. Trump, Sup. Ct. # 24-1287).
The U.S. filed a complaint on July 15 in a case against importer Global Office Furniture and its owner Malcom Smith for allegedly violating the False Claims Act by knowingly underpaying duties on imported office chairs, the U.S. Attorney's Office for the District of South Carolina announced. The case was originally filed in March 2020 by Sharon Joyce, former office manager for Global Office Furniture (United States v. Global Office Furniture, D.S.C. # 2:20-01223).
The US-China Business Council released its annual member survey, which shows almost all U.S. companies operating in China are concerned about the impact of tariffs on their business. Tariffs jumped from the eighth-highest concern in last year's survey to number two in this year's, with the highest being U.S.-China relations.
Trade observers are waiting for more information about whether Aug. 1 tariffs on Canada and Mexico will include goods that currently qualify for duty-free treatment under USMCA, according to comments by Flexport officials during a July 16 webinar.