The end of reciprocal tariffs and tariffs imposed over fentanyl smuggling from China, Canada and Mexico is on hold until an appellate court decides if the use of the International Emergency Economic Powers Act was illegal for those purposes.
The Commerce Department, after suggesting that the import of semiconductors, products containing semiconductors, and equipment and inputs used to make chips could be making the U.S. vulnerable to supply chain disruptions, is now hearing from dozens of stakeholders who say the administration has it completely backwards. Time after time, in more than 150 submitted comments for the Section 232 investigation, stakeholders said imposing tariffs is what would lead to shortages, manufacturing woes, and a loss of competitiveness in the design and manufacture of chips.
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.
President Donald Trump elaborated on his tariff intentions with reporters in the White House, after posting online earlier in the day that 50% tariffs would begin on EU exports on June 1, and that he would be imposing a 25% tariff on imported iPhones.
The Court of International Trade on May 21 held a second hearing in as many weeks on the legality of tariffs imposed under the International Emergency Economic Powers Act. The same three judges, Jane Restani, Gary Katzmann and Timothy Reif, pressed both the government and counsel for 12 U.S. states challenging all IEEPA tariff actions on whether the statute allows for tariff action, as well as whether the courts can review if the declared emergencies are "unusual and extraordinary" and the extent to which the case is guided by Yoshida International v. U.S. (The State of Oregon v. Donald J. Trump, CIT # 25-00077).
The Bureau of Industry and Security posted the requests it has received for new products to be included as derivatives subject to Section 232 tariffs on steel and aluminum products. The release of the requests starts a two-week comment period for the potential inclusions, with comments on each due June 4.
More than 40 companies and trade groups, from businesses with 26 employees to one with 32,000, are asking that 25% Section 232 tariffs on steel and aluminum be applied to hundreds of "derivative" products made by foreign competitors.
The Coalition for a Prosperous America, a pro-Trump trade group, noted in its newsletter that U.S. Trade Representative Jamieson Greer squeezed in an appearance at their annual conference between returning from talks with China in Switzerland and flying to Asia for more negotiations.
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.
The Commerce Department estimates that automakers will be able to save about $10 billion annually in tariffs on USMCA-qualifying cars, trucks and minivans imported from Canada or Mexico by submitting documentation to the International Trade Commission about the U.S. content in those vehicles. However, that estimate assumes that 25% tariffs on imported cars do not change the buying patterns of U.S. consumers, nor the production choices of automakers.