The following lawsuits were filed at the Court of International Trade during the week of May 6-12:
Section 232 Tariffs
The United States currently maintains a 25% tariff on steel imports and 10% on tariff on aluminum imports under Section 232 of the Trade Expansion Act of 1962. In 2018, the Trump administration imposed Section 232 Tariffs on steel and aluminum imports into the United States, citing national security concerns. The U.S. agreed to lift tariffs on Canada and Mexico after the signing of the United States-Mexico-Canada Agreement (USMCA), and reached deals with the European Union, Japan and other countries to replace the tariffs with quotas for steel and aluminum imports into the U.S.
Section 301 China tariff changes outlined by the Office of the U.S. Trade Representative May 14 will take effect approximately 90 days after a request for comments that will be issued next week. That includes a 100% tariff on Chinese-origin electric vehicles, as well as the jump to 25% Section 301 tariffs on steel and aluminum products, ship to shore cranes, lithium-ion electric vehicle batteries, battery parts for non-lithium-ion batteries, "some critical minerals" and face masks, and a bump to 50% tariffs on solar cells, syringes and needles, the White House said in a fact sheet.
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.
In the first third of its first public hearing on promoting supply chain resilience, the Office of the U.S. Trade Representative and interagency officials heard from groups disputing the premise of the project -- that liberalizing trade was harmful to U.S. workers and manufacturing -- and from those who say the worker-centered trade approach of the Biden administration is not going far enough to restore American manufacturing.
China announced that it is "firmly opposed" to both the U.S. decision to open a new Section 301 investigation on allegedly unfair practices in China's maritime, logistics and shipbuilding sectors (see 2404170029) and President Joe Biden's call for a "tripling" of the existing Section 301 tariffs on Chinese steel and aluminum (see 2404170040).
After October's deadline passed without an agreement between the U.S. and the EU on a global trade deal for steel and aluminum (see 2404040034), talks are still ongoing, the European Commission’s top trade official said during a news conference April 18.
President Joe Biden on April 17 called for a “tripling” of Section 301 tariffs on Chinese steel and aluminum, urging the Office of the U.S. Trade Representative to “consider” the increase from the current average 7.5% rate in its ongoing review of Section 301 tariffs.
Ten senators have introduced a bill to require that the administration reinstate 25% tariffs on Mexican steel imports for at least one year, because they say that Mexico is not honoring the 2019 agreement that lifted Section 232 tariffs on Mexico and Canada. A companion bill was also introduced in the House.
Mexican Economy Secretary Raquel Buenrostro said in Mexico this week that if the U.S. reimposes 25% tariffs on Mexican steel exports over alleged surges, Mexico will retaliate. Mexico's steel exports are only 2.5% of the U.S. market, and U.S. steel exports are 14% of the Mexican market, so the U.S. has more to lose if Section 232 tariffs on Mexican steel return, she said.
Sens. Ted Budd, R-N.C., and Thom Tillis, R-N.C., have sent a letter to Secretary of Commerce Gina Raimondo and U.S. Trade Representative Katherine Tai urging them to take action to “immediately and meaningfully limit the volume of Mexican steel concrete reinforcing bar (rebar) being imported into the United States.”