On May 17, 2019, after numerous rounds of negotiations, the United States, Canada, and Mexico issued formal statements on lifting duties on Section 232 steel and aluminum products. While Canada and the U.S. explicitly stated that their respective tariffs would be lifted within the next two days, Mexico has yet to announce how quickly their retaliatory tariffs would end.
China Offers Tariff Exclusion Process on U.S. Goods
On May 13, 2019, the Ministry of Commerce of the People’s Republic of China (“MOFCOM”) announced that it will offer a tariff exclusion process for importers in China that face serious economic or social consequences due to higher tariffs on U.S. goods.
White House Announces Delay on the Imposition of 232 Automobile Tariffs
On May 17, 2019, the White House issued a proclamation delaying the immediate institution of special additional tariffs on the imports of automobiles and automobile parts into the U.S.
President Trump Removes GSP Status for Turkey and Reduces Tariff Rate on Turkish Steel
On May 16, 2019, the President announced that he would be terminating Turkey’s status as a beneficiary of specialized treatment pursuant to the U.S. Generalized System of Preferences program (GSP).
China Hits Back With Higher Tariffs on $60B in U.S. Goods
On May 13, 2019, China’s Ministry of Finance announced that it will raise tariffs on $60 billion in U.S. goods, starting on June 1, 2019. This action was taken in retaliation for President Trump’s latest decision to raise tariffs on $200 billion worth of Chinese products from 10% to 25%.
USTR Considering 4th Round of Tariffs on Chinese Goods
On May 13, 2019, the Office of the U.S. Trade Representative (USTR) released another round of proposed tariffs on Chinese goods worth roughly $325 billion. If these new tariffs come into effect, this would be the fourth round of tariffs in the ongoing and escalating trade war between the two countries. This proposed list of new tariffs came in response to China’s retaliatory tariff increase on $60 billion worth of U.S. products which was in response to the U.S.’s sudden and unprecedented increase of tariffs to 25% on the third round of Section 301 goods which had been in effect since September 24, 2018.
USTR Publishes Notice on Increase in Section 301 List 3 Tariff Rate
On May 8, 2019, USTR released its federal register notice on the sudden tariff increase on the third tranche (List 3) Section 301 tariffs on China. The duty rate on the estimated $200 billion worth of Chinese products will increase from 10% to 25% effective 12:01am ET on Friday, May 10, 2019. The notice also announces that an exclusion process will be instituted for these products in a separate notice.
USTR and President Trump Threaten to Institute Massive and Sudden Increase in Section 301 List 3 Tariff Rate
On Monday, May 6, 2019, U.S. Trade Representative Robert Lighthizer piggybacking on the President’s tweet announced that the tariff rate on the third tranche (List 3) of Section 301 tariffs would be increased from 10% to 25% at 12:01am on May 10, 2019. Robert Lighthizer issued a statement that USTR plans to release a draft federal register notice on the tariffs today; however, nothing further has been published or announced in the Federal Register for Tuesday May 7, 2019.
April Trade Law Update: Court Decisions
Court of International Trade
Summary of Decisions
19-41
On April 1, 2019, the CIT sustained and further remanded Commerce’s remand redetermination in the 2014-2015 administrative review of the antidumping duty order on welded carbon steel standard pipe and tube products from Turkey. Commerce’s action on remand negated the statutory drawback adjustment that Plaintiff Toscelik earned by exporting its finished product to the United States and impinges on the agency’s ability to make a fair comparison. Commerce reasonably relied on Plaintff Toscelik’s questionnaire responses and concluded that Commerce’s grant of circumstances of sale adjustment was supported by substantial evidence.
April Trade Law Update: U.S. International Trade Commission and U.S. Customs & Border Protection
U.S. International Trade Commission
Section 701/731 Proceedings
Investigations
- Certain Pasta from Italy and Turkey: On April 10, 2019, the ITC announced its determination that the revocation on certain pasta from Italy and Turkey would lead to the continuation or recurrence of material injury to an industry in the United States.
- Cast Iron Soil Pipe from the People’s Republic of China: On April 12, 2019, the ITC announced its final determinations in the AD and CVD investigation that industries in the US would be materially injured by the importation of the subject merchandise.
- Larges Diameter Welded Pipe from Canada, Greece, Korea, and Turkey: On April 19, 2019, the ITC announced its final determination that an industry in the United States is materially injured by the importation of the subject merchandise.
- Steel Propane Cylinders from China and Thailand: On April 29, 2019, the ITC issued a revised schedule of the final Phase of the Countervailing Duty and Anti-Dumping Duty Investigations.
- Certain Large Residential Washers from Korea and Mexico: On April 30, 2019, the ITC released its final determinations on whether or not the continuation of the subject merchandise from these countries would continue to cause material injury in the United States.