Rep. Rosa DeLauro, D-Conn., and Sen. Elizabeth Warren, D-Mass., are asking the Trump administration to share more information about their negotiations with countries after the president imposed emergency tariffs on every country.
International Trade Today is providing readers with the top stories from last week in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
CBP released guidance on the decrease of the reciprocal tariff rate on China to 10% beginning at 12:01 a.m. EDT on May 14. As provided in the executive order issued by President Donald Trump the previous day, the guidance says filers of entries from China, Hong Kong and Macau after the effective date should report subheading 9903.01.25, which is the subheading for the 10% universal tariff applicable to almost all countries.
The Court of International Trade on May 13 heard arguments in the lead case on the president's ability to impose tariffs under the International Emergency Economic Powers Act. Judges Jane Restani, Gary Katzmann and Timothy Reif pressed counsel for the plaintiffs, the Liberty Justice Center's Jeffrey Schwab, and DOJ attorney Eric Hamilton on whether the court can review whether a declared emergency is "unusual and extraordinary," as well as the applicability of Yoshida International v. U.S., a key precedential decision on the issue, and whether the major questions doctrine applies and controls the case (V.O.S. Selections v. Trump, CIT # 25-00066).
The reduction of the reciprocal tariff on China from 125% to 10% will take effect at 12:01 a.m. ET on May 14, said President Donald Trump in an executive order. The decrease will not be retroactive.
The Trump administration is leaving 20% tariffs levied in response to fentanyl smuggling in place, while reducing what had been 125% reciprocal tariffs to just 10%, the same as all reciprocal tariffs globally.
The Swiss president told reporters in Bern that her country would put together a letter of intent within two weeks, in the hopes of reaching an "agreement in principle" with the U.S., like the U.K. did (see 2505080033), and thereby avoid 31% reciprocal tariffs set to begin July 8.
The European Commission on May 7 approved an over $5.6 billion French re-insurance scheme for export credit to the U.S. The scheme will run from May 8 to July 8 and will let wine and spirits exporters ship inventory to the U.S. prior to new tariffs on French goods taking effect when a 90-day pause on country-specific reciprocal rate expires.
Rep. Young Kim, R-Calif., introduced a bill to require notification of Congress and provide justification for tariffs enacted through presidential action.
An exemption from reciprocal tariffs for U.S. content that rises above 20% should be calculated only on the basis of a good’s physical characteristics, CBP said in an update to its FAQ on International Emergency Economic Powers Act tariffs. “Non-physical elements” like research and development, intellectual property rights and royalties can’t be included toward exempt U.S. content, CBP said.