The U.S. and Vietnam held “consultations” Dec. 23 on allegations that Hanoi deliberately devalued the dong against the dollar to the detriment of American commercial interests, it was disclosed in the Section 301 investigative report from the Office of the U.S. Trade Representative ruling out tariffs on Vietnamese goods in the final days of the Trump administration (see 2101150053). The report shared nothing about the substance of the previously unknown talks, held roughly a week before USTR convened a virtual hearing Dec. 29 into Vietnam’s alleged currency misbehavior. Agency representatives made no mention of the consultations during the hearing.
The Office of the U.S. Trade Representative will not impose Trade Act Section 301 tariffs on Vietnam imports in the remaining days of the Trump administration for Hanoi’s allegedly improper devaluation of the dong against the dollar, though it did find Vietnam’s practices “actionable” under the statute, and “will continue to evaluate all available options,” the agency said Jan. 15. The decision to forgo tariffs was sure to bring welcome relief to the hundreds of companies, trade associations and business groups that argued vehemently against them in recent weeks, including in a Dec. 29 virtual hearing (see 2012290036).
The U.S. Trade Representative won't immediately impose new tariffs or take other action as a result of the Section 301 investigation into Vietnam's currency valuation practices, the agency said in a news release. While "USTR is not taking any specific actions in connection with the findings at this time," it "will continue to evaluate all available options," it said.
CBP created Harmonized System Update (HSU) 2101 on Jan. 12, containing 389 Automated Broker Interface records and 72 Harmonized Tariff Schedule records, it said in a CSMS message. The changes reflect extensions for COVID-19 treatment Section 301 exclusions (see 2012230076) and increased tariffs on European Union goods (see 2012310010).
November Census Bureau import data newly released through the International Trade Commission’s DataWeb tool documents Vietnam’s significant and growing role in the consumer tech supply chain. Vietnam as a sourcing country made substantial import share gains in product categories experiencing historic spikes in consumer demand during the COVID-19 pandemic, especially TVs with screen sizes under 35 inches, DataWeb shows. The Office of the U.S. Trade Representative is considering whether to impose Section 301 tariffs on goods from Vietnam (see 2101110035).
The International Trade Commission on Jan. 11 posted Revision 2 to the 2021 Harmonized Tariff Schedule, implementing an increase in tariffs on goods of the European Union that takes effect Jan. 12 (see 2012310010). The ITC added new U.S. Note 21(s) to describe fortified wines and grape spirits from France and Germany that are newly subject to 25% Section 301 tariff under new subheading 9903.89.57.The note also describes grape spirits that are not subject to the additional tariffs, but which nonetheless are given their own Chapter 99 subheading at 9903.89.59. Similarly, the ITC also added new U.S. Note 21(t) to describe aircraft manufacturing parts from France and Germany subject to the additional 15% tariff under subheading 9903.89.61. The new note also describes aircraft manufacturing parts that are not covered by the new tariffs, which should be filed under new subheading 9903.89.63.
The following lawsuits were filed at the Court of International Trade during the week of Jan. 4-10:
The additional Section 301 tariffs on goods from Europe took effect on Jan. 12 (see 2012310010), CBP said in a CSMS message. Products subject to the additional tariffs include French and German aircraft manufacturing parts, non-sparkling wine and cognac. The aircraft parts are subject to a 15% additional tariff, the wines and brandies, 25%.
International Trade Today is providing readers with the top stories from Jan. 4-8 in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
A Republican congresswoman who has been the biggest critic of the Section 232 exclusion process told National Foreign Trade Council webinar listeners that, “I’m hoping for the best under this administration. We’ve suffered a lot under [Section] 232 and 301.” Rep. Jackie Walorski, R-Ind., added that “I can’t wait to see it start unraveling.” Walorski, who claimed Jan. 12 that “we were kind of in this battle” with President Donald Trump over the broadness of the China tariffs, voted against certifying Biden's Electoral College victory last week.