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Nithya Nagarajan

Nithya’s extensive background in U.S. trade issues spans 25 years and includes various roles in a number of federal government agencies, including the Department of Commerce Department of Justice, and the U.S. Court of International Trade. She assists clients with administrative and regulatory actions before the Department of Commerce, International Trade Commission and U.S. Customs and Border Protection (CBP) and defends clients in appeals before the Court of International Trade, Court of Appeals for the Federal Circuit, NAFTA panels and the World Trade Organization. In addition to her body of U.S. experience, Nithya is also well-versed in international trade issues in China and India.

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With the government shutdown entering its fourth week and with no end in sight, a number of federal agencies are feeling the pressure. The Department of Commerce and the U.S. International Trade Commission have been effectively shuttered for the past four weeks and recently the Office of the U.S. Trade Representative released a short statement indicating that they had begun furloughing nonessential personnel. A number of other agencies and departments have also had their work affected or completely suspended. Outlined below is a brief analysis the current shutdown is having on those federal agencies which are critical to imports, exports, and international trade.

On December 28, 2018, the United States Trade Representative (“USTR”) published in the Federal Register  the first notice granting  product exclusions for specific products from the Section 301 tariffs subject to an additional 25% duty effective July 6, 2018.   The exclusions apply only to the $34 billion worth of Chinese tariffed products from Tranche 1. These exclusions will extend for one year from the date of publication of the notice.

With the year winding down, we have prepared a comprehensive timeline and summary of the tariff actions of 2018, including the Section 232 steel and aluminum tariffs and Section 301 tariffs on China. We have also provided information on retaliatory tariffs imposed on the U.S. by other countries during this same timeframe.

On Saturday, December 1, 2018, President Trump and Chinese President Xi Jinping met to discuss trade relations between the two countries. Following their meeting, President Trump indicated that he would postpone increasing the tariff rate to 25% on certain Chinese goods worth up to $200 billion currently covered under Section 301 List 3. This increase was originally slated for January 1, 2019 (see our previous post here).  The 10% duties on that $200 million in goods will remain in effect, however, as will the 25% tariffs on the goods worth about $50 billion, which appear on the first and second list of additional duties. According to the White House press statement, the parties agreed to “endeavor” on a 90-day period, until March 1, 2019, to discuss the restructuring of China’s trade policies and come to an agreement.