A pair of Wisconsin congressmen re-sent a letter on Section 301 exclusions to U.S. Trade Representative Katherine Tai, arguing that it was unfair to let exclusions expire in cases where there was still no source of the good outside China. Sen. Ron Johnson, R-Wis., and Rep. Bryan Steil, R-Wis., said they didn't understand how the office could grant an exclusion because the good is only available from China and because the duties would cause severe economic harm to the importer, but then not renew the exclusion a year later, when the factors are unchanged. They publicized the letter in an April 2 press release. Tai has not said whether the office will offer more Section 301 exclusions, but has said that if there is an exclusion process, it will be transparent.
The following lawsuits were filed at the Court of International Trade during the week of March 22-28:
The International Trade Commission on March 17 published Revision 1 to the Basic Edition of the 2021 Harmonized Tariff Schedule. This latest edition implements the four-month suspension of Section 301 tariffs on goods from the European Union imposed as part of the Airbus subsidy dispute at the World Trade Organization (see 2103050036).
The following lawsuits were filed at the Court of International Trade during the week of March 15-21:
Litigants challenging lists 3 and 4A Section 301 tariffs have a “difficult hill to climb” in making a compelling case for why the tariffs should be lifted, a lawyer said. Speaking March 11 on a panel at Georgetown Law's 2021 International Trade Update on the courts' role in tariffs, Bradford Ward of King & Spalding called out the central claim used by one of the litigants: that the law does not permit the Office of the U.S. Trade Representative to increase tariffs, only to “delay, taper or terminate such actions.” In the same provision of that law, modification of tariffs is authorized when the burden on U.S. commerce has increased or decreased, meaning the agency can increase or decrease tariffs, said Ward, who used to work at USTR and now represents domestic industry. “It would be illogical, from my perspective, for the statute to prohibit an increase in tariffs while recognizing the ability of USTR to modify via an increase in the burden. It doesn't seem coherent,” Ward said.
Across dozens of pages of written answers to Senate Finance Committee members, U.S. trade representative nominee Katherine Tai often avoided directly answering questions, instead pledging to work with senators on their priorities. One of the most common questions posed to Tai was whether she would renew Section 301 exclusions that expired last year; as well, whether she would allow companies that were denied exclusions another chance at a request; and whether she would reopen the exclusion process.
U.S. trade representative nominee Katherine Tai said that despite the president's prioritizing of the domestic economy, “I don't expect, if confirmed, to be put on the back burner at all.” Tai, a veteran of the House Ways and Means Committee trade staff, faced largely friendly questioning over a more-than-three-hour hearing in the Senate Finance Committee on Feb. 25.
The American Apparel and Footwear Association told President Joe Biden that the Section 301 exclusion that covers cloth masks will be expired on April 1, and that it needs to be extended past then, since the COVID-19 pandemic will not be over. They said in a news release that without that exclusion, the tariff rate on personal protective equipment will double.
The following lawsuits were filed at the Court of International Trade during the week of Feb.8-14:
International Trade Today is providing readers with the top stories from Feb. 8-12 in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.