The Commerce Department seeks comments by June 22 in connection with its recently launched Section 232 investigation into the national security effects of “imports of automobiles, including cars, SUVs, vans and light trucks, and automotive parts,” it said in a notice. The agency began the investigation into potential tariffs on May 24, amid reports that President Donald Trump wants a 25 percent tariff on cars and auto parts to counter the purported erosion of the U.S. auto industry by imports (see 1805240002). Rebuttal comments in connection with the investigation are due July 6. Commerce will hold a public hearing on the investigation July 19-20 in Washington, with requests to participate also due June 22.
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The White House will resume plans to impose 25 percent tariffs on some $50 billion worth of goods from China, it announced on May 29. The announcement came slightly over a week after the Trump administration said it would put the Section 301 tariffs on hold while the U.S. and China formalize a deal between the countries (see 1805210029). A final list will be announced by June 15 and "tariffs will be imposed on those imports shortly thereafter," the White House said.
The Commerce Department has launched an investigation into the need for tariffs on cars and auto parts in a move widely seen as an attempt to pressure Mexico to accept a NAFTA rewrite. Commerce Secretary Wilbur Ross said on May 24 that "there is evidence suggesting that, for decades, imports from abroad have eroded our domestic auto industry,” and the department will explore whether by damaging the U.S. economy and reducing research in auto-related technology, the decline of domestic auto and auto part manufacturing therefore is a national security issue. Currently, SUVs and trucks face a 25 percent tariff, while cars and auto parts face a 2.5 percent tariff outside the NAFTA region, or if a Canadian or Mexican vehicle fails to meet a 62.5 percent rules of origin quota.
With Europe's steel and aluminum tariffs exemption expiring in eight days, European Union Trade Commissioner Cecilia Malmstrom told reporters in Brussels that the U.S. may not accept the bloc's trade concessions. According to a report in The Guardian, the EU has offered to up LNG imports from the U.S., change the terms of trade on cars and discuss World Trade Organization reforms, but all of these are conditioned on the U.S. dropping the threat of tariffs. According to The Guardian, Malmstrom said on May 22: “Is this going to be enough? I am not sure, frankly."
India, which earlier submitted at the World Trade Organization a list of retaliatory tariffs for the U.S.'s Section 232 action, now has filed a case challenging the action's legality. On May 23, it circulated a request for consultations with the U.S., the first step before a panel can be convened to consider the dispute. India points not only to the fact that countries are being treated differently, but also says that the Commerce Department is using voluntary export restraints and quotas to protect domestic producers. Both are against the WTO's General Agreement on Tariffs and Trade ( GATT) rules, India alleges.
Sen. Joe Manchin, D-W.Va. largely agrees with President Donald Trump that the U.S. has been on the losing end of most trade agreements, Manchin said while speaking at an event on trade May 23 at the Heritage Foundation. Manchin said he's happy with the trade relationships the U.S. has with Canada and Europe, but, "other than that, we're very skeptical." He said he likes where adviser Peter Navarro is going and how U.S. Trade Representative Robert Lighthizer, approaches trade, but he doesn't like other views in the administration. "I think [Trump] has had a lot of infighting, which is to be expected, but it's the undecidedness right now that is causing a lot of inaction."
The Section 232 tariffs on steel and aluminum will continue to apply to such goods from China despite a hold on new tariffs on other products from China while trade talks continue (see 1805200002), Treasury Secretary Steven Mnuchin said on May 22. "As it relates to China, the steel and aluminum tariffs will remain in force," Mnuchin said during a hearing before the Senate Appropriations Subcommittee on Financial Services. "Those were not part of discussions," which were focused on the proposed Section 301 tariffs, he said.
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CBP provided further details on how importers of goods excluded from Section 232 tariffs on steel and aluminum can file entries and receive refunds, in a May 21 CSMS message. "Importers and filers importing products granted an exclusion should submit the product exclusion number based on the last six digits of the product exclusion docket number," CBP said. Filers should not "submit the corresponding Chapter 99 HTS number for the Section 232 duties when the product exclusion number is submitted," the agency said.