On August 23, 2019, President Trump announced via Twitter that the tariff rates on Lists 1, 2, and 3, worth approximately $250 billion worth of goods imported from China, will increase from 25% duty to 30% beginning October 1, 2019. Additionally, the President indicated that the tariff rate on the List 4 tariffs currently set to begin on September 1 will increase to 15% from 10%. It is unclear if the tariffs currently set to go into effect on December 15 will also be increased to 15%.
Continue Reading
July Trade Law Update: Presidential Actions
USTR Proposes New Tariffs on EU Products under Section 301
The Office of the U.S. Trade Representative (USTR) announced on July 1, 2019 a proposed list of tariffs on approximately $4 billion worth of products from the European Union (EU). This is a supplemental list to the April 12, 2019 proposed tariffs with an approximate trade value of $12 billion.
According to USTR, this action is designed to pressure the EU to implement the World Trade Organization’s (WTO) Dispute Settlement Body recommendations in regard to the United States’ WTO dispute against the EU’s subsidies on large civil aircraft.
Interested parties can appear at a public hearing or file comments on the proposed list.
Continue Reading
June Trade Law Update: Court Decisions
Court of International Trade
Summary of Decisions
19-66
On June 3, 2019, in the ongoing case of determining whether or not Plaintiff Midwest Fastener’s zinc and nylon anchor products are considered to be nails, the CIT sustained the Department of Commerce’s final results of the redetermination pursuant to the Court Remand. The CIT concluded that Plaintiff’s zinc and nylon anchors do not function like nails and are considered a separate type of product from nails by the relevant industry. Commerce’s remand results were sustained and Plaintiff Midwest Fastener’s products were excluded from the scope.
19-69
On June 6, the CIT denied Plaintiffs Confederacion de Asociaciones Agricolas del Estado de Sinaloa, Consejo Agricola de Baja California, Asociacion Mexicana de Horticultura Protegida, Asociacion de Productores de Hortalizas del Yaqui y Mayo, and Sistem Producto Tomate (collectively, “Plaintiffs”) motion for a temporary restraining order (“TRO”) and preliminary injunction (“PI”) in the antidumping duty investigation of tomatoes from Mexico. The Court determined that the Plaintiffs had not met their burden to establish the likelihood of success on the merits and irreparable harm absent injunctive relief. They also had failed to establish if the hardships tip in favor of denying the Plaintiff’s motion. The Court also found the public interest to be neutral. For those reasons the CIT denied the plaintiff’s motions.
Continue Reading
June Trade Law Update: Presidential Actions
India Loses GSP Preferential Status Effective June 5, 2019
In a sudden announcement after 8pm on Friday May 31, 2019, the President made the anticipated decision that India was to be removed from the Generalized System of Preferences (“GSP”), effective June 5, 2019. The statement issued by the White House claims that the President had “determined that India has not assured the United States that India will provide equitable and reasonable access to its markets.” The end of the GSP eligibility and removal of India’s developing country status comes after holding that status for approximately 30 years and is a deepening indication of the U.S.’s increased protectionist stance in the global trade environment. To see our full post on India losing its GSP status, click here.
Continue Reading
May Trade Law Update: Presidential Actions
USTR Publishes Notice on Increase in Section 301 List 3 Tariff Rate
On May 8, 2019, USTR released its federal register notice on the tariff increase for 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.
The rate increase to 25% means that entries of goods
- entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on May 10, 2019, and
- exported to the United States on or after May 10, 2019 will now be subject to an additional tariff of 25%. Entries must be subject to both qualifiers-meaning that if a shipment has been exported prior to May 10, 2019 it will still be subject to the 10% duty rate. However, if the shipment is exported after 12:01am ET on May 10 the 25% duty rate will apply. To see our full post, click here.
USTR Extends Deadline for Shipments from China to Enter Goods under 10% Duty Rate on List 3
Late Friday, May 31, 2019, the Office of the U.S. Trade Representative (“USTR”) announced that they would extend the time frame for the application of increased tariffs on shipments of goods exported from China prior to May 10, 2019. The increase from 10% to 25% in duties was announced on May 8th and was set to be applicable on all imports starting on June 1, 2019. The USTR has now revised its earlier announcement and has stated that shipments must be entered before midnight on June 15, 2019 in order to remain subject to the 10% duty rate. Any entries after midnight on June 15, 2019 will be subject to the increased rate of 25% announced on May 8, 2019.
Continue Reading
President Trump Announces Tariffs on All Imported Goods from Mexico
Key Facts:
- President Trump is imposing tariffs on all imported goods from Mexico beginning on June 10, 2019
- The tariff rate will begin at 5% and increase to 10% on July 1, 15% on August 1, 20% on September 1, and 25% on October 1, 2019.
- The tariffs will remain at 25% until “Mexico substantially stops the illegal inflow of aliens coming through its territory”
On May 30, 2019, President Trump announced that he would impose tariffs on all imported goods from Mexico beginning on June 10, 2019 at a 5% duty rate and increasing an additional 5% each month for three months.
Continue Reading
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.
Continue Reading
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.
Continue Reading
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%.
Continue Reading