Mexico

Late on September 30, 2018, the United States and Canada reached a new trade agreement (the USMCA) that addresses many of the contentious issues that delayed Canada from rejoining the countries’ trilateral trade agreement (NAFTA).

In a joint statement, Canadian Foreign Affairs Minister Chrystia Freeland and U.S. Trade Representative Robert Lighthizer said that the new agreement “will give our workers, farmers, ranchers, and business a high-standard trade agreement that will result in freer markets, fairer trade and robust economic growth in our region. It will strengthen the middle class, and create good, well-paying jobs and new opportunities for the nearly half billion people who call North America home.”

After President Trump announced steel and aluminum tariffs on several of the country’s allies in March 2018, a number of EU countries, Mexico, and Canada immediately announced retaliatory tariffs against American products. Other trade partners and allies have also made plans to seek remedies through the North American Free Trade Agreement (NAFTA) and the World…

As a result of the Steel and Aluminum tariffs announced by President Trump in March 2018, and amended with proclamations issued on May 1, 2018, and June 1, 2018, several trading partners have decided that reciprocal and retaliatory tariffs on U.S. products are appropriate.  To date, the following countries have decided to retaliate – Canada, China, the European Union, India, and Mexico. See the comprehensive list of retaliatory tariffs here.

On April 30, 2018, the President issued two new Proclamations regarding the 232 tariffs imposed on imports of steel and aluminum articles into the United States.  The new Proclamations modify the previous steel and aluminum Proclamations with respect to imports from Canada, Mexico, the European Union, Argentina, Australia, Brazil and South Korea.

Country Exemptions

On March 22, 2018, the President issued new Proclamations temporarily exempting imports from certain countries from the steel and aluminum tariffs that were announced in Proclamations 9704 and 9705 of March 8, 2018. The President had previously exempted imports from Canada and Mexico and the new Proclamations add exemptions for imports from Argentina, Australia, Brazil, European Union member countries, and South Korea. However, the Proclamations make clear that the exemptions, including the exemptions for Canada and Mexico, are temporary and that tariffs will go into effect on imports from an exempted country on May 1, 2018 unless the country has reached an agreement with the United States on an alternative means to remove the threat to national security posed by imports of steel articles from the country. If any agreements are reached and any countries are exempted on a long term basis, the President will consider adjustments to the tariff level imposed on non-exempt countries.

In the meantime, the President may consider quotas on imports from exempt countries. If a quota is imposed, the quota amount imposed will take into account all imports of steel and aluminum since January 1, 2018.

While the country exemptions may extend beyond May 1, depending on the progress on trade negotiations, there is no guarantee of such extensions.

The recent announcement by the White House that it intends to unilaterally impose 25 percent tariffs on steel imports and 10 percent tariffs on aluminum imports from all countries except Canada and Mexico has created significant uncertainty among foreign exporters.

It is of great import that Canada and Mexico are excluded from the imposition of section 232 duties for the time being. The European Union, Australia and South Korea have expressed a desire for similar exclusions to be applied to them. In fact, the EU and Australia are almost assured of an exemption based upon press reports. But where does that leave other important allies such as Turkey, India, Brazil and a host of other steel-exporting nations?

Husch Blackwell’s Jeffrey Neeley authored an article, “Solar Panel Tariff Creates New Uncertainty” that appeared in Law360 this week. The article discusses in depth the proclamation signed by President Trump last week. From the article:

[T]he relief announced provides that the first 2.5 gigawatts of imported cells are excluded from the additional tariffs. The use of an

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On January 22, 2018, the Office of the U.S. Trade Representative (“USTR”) announced that the Trump Administration is granting relief for the domestic solar panels and modules industry under section 201 of the Trade Act of 1974. This confirmed the fears of many consumers that there substantial additional duties would be imposed on those products.…

On Tuesday, January 23, 2018, President Trump signed the Presidential Proclamation to Facilitate Adjustment to Competition from Imports of Large Residential Washers, thereby announcing the President’s decision regarding the investigation of large residential washers (LRWs) under Section 201 of the Trade Act of 1974 (the LRW Safeguard Investigation). A copy of the Proclamation can be found here.