The House Ways and Means Committee will hold a hearing April 12 on how the Section 232 tariffs are affecting the economy and jobs and how proposed Section 301 tariffs might do the same, it said in a notice. "In enforcing our trade laws, we should always take a targeted approach to address unfair practices while avoiding harm to U.S. workers and job creators," Chairman Kevin Brady, R-Texas, said.
The Court of International Trade on April 5 rejected a bid to stop Section 232 tariffs on steel products, finding the recently announced 25 percent tariff may be imposed for economic reasons in addition to national security. The court denied Severstal’s motion for a preliminary injunction barring imposition of the tariffs on the importer, and will now proceed to hear arguments over whether it should dismiss the case entirely.
China disputed the legality of the Section 232 tariffs on steel and aluminum at the World Trade Organization (see 1803260025), and now the U.S. is disputing both the characterization of those tariffs and how China has responded to them. The tariffs were for national security, and not to protect domestic industry from rising imports, asserted Deputy U.S. Trade Representative Dennis Shea, ambassador to the WTO. China's decision on April 2 to implement tariffs on pork, aluminum scrap and other U.S. exports were not justified, Shea wrote in a letter to China's WTO ambassador, since China can only use the safeguards to respond to safeguards, and the U.S. measures were not safeguards. "China has asserted no other justification for the measures, and the United States is aware of none," he wrote. "Therefore, it appears that China's actions have no basis under WTO rules."
The Section 232 tariffs on steel and aluminum were only due on immediate transportation entries that were accepted by the port after the duty rates took effect on March 23, CBP said in an April 5 CSMS message. "Accordingly, entries of steel and aluminum articles covered by an entry for immediate transportation accepted at the port of original importation before March 23, may have been incorrectly rejected by CBP and/or incorrectly filed with a Chapter 99 steel or aluminum HTS classification," the agency said. The National Customs Brokers & Forwarders Association of America gave similar advice in a note to members on April 4 (see 1804040018).
The recently implemented Section 232 tariffs on steel and aluminum didn't apply to goods under an Immediate Transportation entry if those goods arrived within U.S. port limits as of the March 23 effective date (see 1803230014), the National Customs Brokers & Forwarders Association of America said in an April 3 email. The NCBFAA said it confirmed that with CBP. "Thus, where an IT was filed for goods which arrived prior to March 23, 2018, 232 duties should not be assessed even though the entry summary was filed after March 23, 2018," it said. Filers that "have deposited 232 duties on IT shipments which arrived prior to March 23, 2018 should contact their [Automated Broker Interface] Client Representative to discuss the procedure for obtaining a refund of the 232 duties." CBP didn't comment.
Ukraine is asking for consultations at the World Trade Organization over the U.S. Commerce Department's January determination that Ukraine is dumping carbon and alloy steel wire rod (see 1803130013). The WTO on April 3 published the request, which asks why the two companies that cooperated have antidumping duties of 44.03 percent, while others have 34.98 percent. It also asks why the U.S. took action against wire rod exporting companies in two groups (see 1803210009) to evaluate material injury. The document asks: "Would the United States please clarify how such a methodology comply with WTO rules and principles?" In other action April 3 at the WTO, China officially submitted its safeguard tariffs reacting to U.S. Section 232 tariffs on steel and aluminum (see 1804020009).
International Trade Today is providing readers with some of the top stories for March 26-30 in case they were missed.
Commerce Secretary Wilbur Ross, speaking on Bloomberg television, implied an exemption for Europe to steel and aluminum tariffs could be linked to a broader trade deal. Ross was responding to a Bloomberg TV reporter who said the European Commission said the U.S. was looking to negotiate the Transatlantic Trade and Investment Partnership, commonly called TTIP. Sen. John Cornyn, R-Texas, who is in the Senate leadership, tweeted out the March 29 story on March 30. Ross dismissed the idea that reopening TTIP is news. Trump "terminated the Trans-Pacific deal. He did not terminate TTIP. We're open to discussions with the European Commission. That is nothing new. That's a long-standing objective." Last year, the European Commission said it would like to talk again about the TTIP if there's the political will to do so (see 1710170018). Despite the extended timelines normally associated with negotiating comprehensive trade agreements, Ross did not say whether the EU's current tariff exemption would be extended beyond May 1, when the temporary exemption is scheduled to end.
CBP issued the following releases on commercial trade and related matters:
Steel and aluminum tariffs and the announcement of tariffs on Chinese goods are pushing the world toward a global trade war, World Trade Organization Director-General Roberto Azevedo said March 28 on BBC. But there's still time to avoid a trade war, he said, because, for the most part, countries have merely announced tariffs, not imposed them, and are negotiating. "The fact is, that when you announce certain types of measures, and others deem that those measures are not in compliance with their obligations, and threaten to retaliate, that is a problem. It is a big problem. I don’t think anybody believes this is something minor, even in the U.S. administration," he said. "People are beginning to understand, I hope, how serious this is, and the kind of impact it could have on the global economy," he said, and that's why, he thinks, the U.S. is negotiating with countries around the world to find ways to avoid imposing steel and aluminum tariffs.