Mexico's economy minister is meeting with U.S. Trade Representative Robert Lighthizer on Aug. 2, and analysts watching the renewed momentum between Mexico and the U.S. in NAFTA discussions see competing pressures on negotiators. On one side is the need to show results for its tariff hikes, on the other is a deep skepticism of trade deals, the observers said. A source close to the negotiations said Mexico and the U.S. are getting closer on reaching a deal on auto rules of origin -- and that Mexico appreciates the other areas where the U.S. is showing more flexibility.
Two Republicans and one Democrat introduced a bill in the Senate Aug. 1 that would stop a Section 232 tariff if majorities in both chambers don't want the tariff. Sen. Rob Portman, a former U.S. trade representative, is the author of the bill, co-sponsored by Sen. Joni Ernst, R-Iowa, and Sen. Doug Jones, D-Ala. Portman had been working for weeks to sign up co-sponsors (see 1807130019).
A Senate effort to constrain the president's power on Section 232 tariffs was not weakened by the White House announcement last week that any tariffs on autos or auto parts would not go into effect against Europe (see 1807250031), Sen. Bob Corker, R-Tenn., said in a brief hallway interview July 31. Corker said senators were continuing to talk about his bill this week. He said when the announcement first came out, he was concerned that it could take the wind out of the sails of his bill. But, he said, as people have realized that nothing substantive was achieved in that meeting between President Donald Trump and European Commission President Jean-Claude Juncker (see 1807260026), interest in taking action remains.
Commerce Secretary Wilbur Ross pointed to the European Union's interest in working on a trade deal (see 1807250031) that addresses non-tariff barriers and some industrial tariffs as "a real vindication that the president’s trade policy is starting to work." Ross, who was speaking to reporters traveling with the president to Iowa July 26, said Donald Trump's approach is to make it painful for other countries to continue their trade stances.
U.S. Trade Representative Robert Lighthizer said the effort to get China to change its industrial policy and intellectual property practices will take years, but added that "that's not to say what we're doing now will be in place for years." Lighthizer was testifying July 26 to a Senate Appropriations subcommittee on the administration's trade policy, and was pressed again and again on how long tariffs will continue to increase costs on American businesses, and how long retaliatory tariffs will damage their ability to export.
The Bureau of Industry and Security is seeking public comments by Sept. 10 on the Section 232 investigation into the national security effects of uranium imports (see 1807180029), BIS said in a notice. The agency seeks input on the health of the domestic uranium industry, quantities of uranium imports and industry growth needed to meet national security requirements, it said. BIS will publish another notice if a public hearing is planned, it said.
The Bureau of Industry and Security issued a list of frequently asked questions about product exclusions from the Section 232 tariffs on steel and aluminum. Among the answered questions are how to seek a different decision if a company disagrees with a denial. If the denial is the result of an inaccurate Harmonized Tariff Schedule classification, the company should contact CBP and then resubmit the request with the correct classification. "If the denial is based on an objection, the requester may file a new exclusion request and include information documenting the reason why the new request should be granted notwithstanding the prior objection(s)," BIS said. "This information could include, for example, the documentation of the inability or refusal of the objector(s) to provide the product." The lack of denial appeal procedure is among some complaints about the exclusion process (see 1807230062).
Two Southern states senators introduced their bill on Section 232 tariffs while the president was talking to the European Union about threatened auto tariffs. The Automotive Jobs Act of 2018 requires the International Trade Commission "to conduct a comprehensive study of the well-being, health, and vitality of the United States automotive industry before tariffs could be applied." The bill is co-sponsored by Tennessee Republican Sen. Lamar Alexander and Sen. Doug Jones, D-Ala. Both have significant auto plants in their states.
The top Democrat on the House Ways and Means Committee's Subcommittee on Trade is trying to force the administration to disclose information about its decision-making process on tariffs. Rep. Bill Pascrell, D-N.J., would have to get the House Speaker to bring the resolution up for a vote, in addition to securing a majority vote. The resolution asks for documents, spreadsheets and slide presentations that explain why the president chose a global 25 percent tariff on steel after the Commerce Department gave a global 24 percent tariff as one option, and why he made the aluminum tariff 10 percent, rather than 7.7 percent, as laid out by Commerce. It also asks for information on how the administration intends to help exporters hurt in the trade war, and its strategy on resolving the problems laid out in the Section 301 report, either through multilateral action or through negotiations with China.
After four months, only 266 product exclusion requests have been granted, 421 were denied, and more than 26,000 are yet to be decided, House Ways and Means Trade Subcommittee Chairman Dave Reichert, R-Wash., said at a hearing on the Section 232 exclusion process. He called for numerous changes to the process in his opening statement.