Solar manufacturers asked for retroactive relief on Section 301 tariffs on manufacturing equipment, buyers and producers disagreed on medical product tariffs and many manufacturers supported the equipment listed, and asked for more equipment or parts for equipment that was not identified by the Office of the U.S. Trade Representative as it recommended a new round of exclusions limited to manufacturing equipment.
U.S. Trade Representative (USTR)
The U.S. cabinet level position that oversees trade negotiations with other countries. USTR is part of the Executive Office of the President. It also administers Section 301 tariffs.
Government subsidies for domestic manufacturing in strategic sectors tend to then need trade protections, former top U.S. trade representative officials from the Trump and Biden administrations agreed.
The U.S. has asked Mexico to review whether workers at the Volkswagen de México, S.A. de C.V. facility in Cuautlancingo, Puebla, are being denied their rights to freedom of association and collective bargaining, the Office of the U.S. Trade Representative announced May 28.
Many importers who were hit with Section 301 tariffs six years ago expected they would be rolled back in 18 months or two or three years, said Nicole Bivens Collinson, director of Sandler Travis's international trade and government relations practice. Then, once that didn't happen, they thought they'd see what happened in the Biden administration.
Full details about the Section 301 exclusion process will be revealed next week, but a White House memo said that importers of machinery in chapters 84 and 85 will need to submit requests for exclusions, even though the Office of the U.S. Trade Representative already has compiled a list of HTS codes it sees as appropriate targets for exclusions. The memo said there will be a way to register opposition to those requests, as well. The memo said the USTR "shall prioritize, in particular, exclusions for certain solar manufacturing equipment."
Section 301 China tariff changes outlined by the Office of the U.S. Trade Representative May 14 will take effect approximately 90 days after a request for comments that will be issued next week. That includes a 100% tariff on Chinese-origin electric vehicles, as well as the jump to 25% Section 301 tariffs on steel and aluminum products, ship to shore cranes, lithium-ion electric vehicle batteries, battery parts for non-lithium-ion batteries, "some critical minerals" and face masks, and a bump to 50% tariffs on solar cells, syringes and needles, the White House said in a fact sheet.
In the first third of its first public hearing on promoting supply chain resilience, the Office of the U.S. Trade Representative and interagency officials heard from groups disputing the premise of the project -- that liberalizing trade was harmful to U.S. workers and manufacturing -- and from those who say the worker-centered trade approach of the Biden administration is not going far enough to restore American manufacturing.
The National Customs Brokers & Forwarders Association of America's president told the U.S. trade representative that customs brokers and others in the trade community aren't "pro forced-labor, pro-pollution, pro-unsustainable environmental practices," but that too often, "‘race to the top’ objectives do not take into consideration the ability to actually implement the policies, and the costs associated with the goals."
More than a quarter of the U.S. Senate asked the U.S. trade representative to push back against the EU Deforestation-Free Regulation, saying the approach presents "significant compliance issues due to its stringency and ambiguity. One specific concern is the traceability requirement. The EUDR imposes a geolocation traceability requirement that mandates sourcing to the individual plot of land for every shipment of timber product to the EU. In the U.S., 42 percent of the wood fiber used by pulp and paper mills comes from wood chips, forest residuals, and sawmill manufacturing residues -- wood sources that cannot be traced back to an individual forest plot."
The U.S. ambassador to Canada and the Canadian ambassador to the U.S. said trade cooperation between the two countries -- each is the other's top trading partner -- is crucial, but their tone on the NAFTA replacement was slightly different.