Because China makes 90% of anode and cathode materials, and dominates processing of critical minerals, no matter where they are mined, recent hikes in tariffs on Chinese minerals will do little, trade experts agreed.
Forced Labor
CBP is the primary U.S. agency tasked with combating forced labor in international trade. It is the only agency with legal authority to take enforcement action and prevent entry into domestic commerce of goods produced with forced labor. CBP combats forced labor by issuing Withhold Release Orders (WROs) and Findings, and enforcement of the Uyghur Forced Labor Prevention Act (UFLPA), and Countering America’s Adversaries Through Sanctions Act (CAATSA). Goods subject to WROs and Findings, UFLPA, and CAATSA status cannot be entered at any ports of the U.S.
Domestic steel producer Zekelman Industries filed a lawsuit on Oct. 21 in a Washington, D.C., federal court alleging that the Mexican government breached its 2019 agreement with the U.S. to slow imports of Mexican steel products. The company argued that Mexico's breach of the deal "has devastated the U.S. steel industry," forcing the company to close two plants due to the oversupply of cheap steel (Zekelman Industries v. United States, D.D.C. # 24-02992).
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Decoupling between the U.S. and China in the most technologically advanced products is real, economists said at an Oct. 21 Peterson Institute for International Economics event, but trade overall between the two countries continues to grow, if more slowly than trade with other partners.
Canada is studying several policy and legislative options to strengthen its forced labor enforcement, including one that could establish new import traceability requirements for certain goods and another that could require importers to pay all fees associated with imports detained for forced labor.
Rep. Elise Stefanik, R-N.Y., the lead sponsor of a bill to impose a 30% tariffs on Chinese drones, with a 5% escalation annually, as well as a bill banning Da-Jiang Innovations-made drones on U.S. communications infrastructure, reacted to the news that CBP is detaining DJI drones under suspicion they are made with Uyghur forced labor.
Chinese drone supplier DJI said CBP is holding up shipments of select drones. In a blog post Oct. 17, the company said CBP cited the Uyghur Forced Labor Prevention Act (UFLPA) as the reason for the holdups. DJI denied that any of its goods were produced with forced labor, saying, “this assertion made against [us] ... is entirely unfounded and categorically false.” The company said it's working with CBP to provide the necessary documentation, “demonstrating [its] compliance with the UFLPA.” CBP declined to comment.
Officials from Squire Patton Boggs said that if Donald Trump returns to the presidency, a 10% tariff or higher on a vast swath of imports could come very quickly, but what wouldn't be subject to the tariffs is not yet clear.
CBP's new Forced Labor Allegation Portal and Forced Labor Portal will consolidate the information collection of potential forced labor violations into one centralized location, "increasing efficiency and reducing the burden of collection to both CBP and the public," the agency said in a notice seeking comments as it prepares to submit the information collection to the Office of Management and Budget.
Effectively immediately, CBP no longer will detain disposable gloves produced by Malaysian company Brightway Holding at U.S. ports of entry because that company has been able to prove that its gloves were not made using forced labor.