Trump Threatens Additional Tariffs While Trade Awaits List 3 Exclusion Process

Trump Threatens Additional Tariffs While Trade Awaits List 3 Exclusion Process

President Trump issued two tweets this weekend threatening to increase the current 10% tariff on List 3 Chinese items from 10% to 25% to become effective on Friday, May 10. He further threatened to impose a 25% tariff on all remaining imports from China.  Whether the President could impose such tariffs without adequate notice and comment from U.S. industry remains an open question potentially leading to challenge if enacted.

USTR Threatens New Section 301 Tariffs Against EU

The U.S. Trade Representative’s Office has proposed new tariffs on $11.2 billion in imports of European Union goods in response to the World Trade Organization’s decision that the EU improperly subsidized Boeing Co.’s main competitor, Airbus SE’s aircraft production.

The proposed list of EU goods which would be affected by these tariffs is divided into two sections. The first section, which can be accessed here, only applies to products from France, Germany, Spain or the United Kingdom and covers civil aviation products including aircraft and parts.

The second section, which can be accessed here, applies to products from all members of the EU and includes a wide range of products spanning from cheese and wine to lenses and handbags. The preliminary list includes about $23.8 billion in U.S. imports from the EU. These duties will be in addition to the Section 232 steel and aluminum duties the U.S. currently imposes and the threatened U.S. duties on automobiles and auto parts.

The dispute between the U.S. and the EU is related to litigation at the Word Trade Organization. These tariffs would only be implemented after the WTO gave its final approval, and the amount of duties the U.S. will seek is subject to arbitration in the WTO, with a decision expected this summer. According to the U.S. Trade Representative, Robert Lighthizer, the administration is initiating preparations now in order to be prepared to act immediately when the WTO issues its findings.

The inter-agency Section 301 Committee is seeking public comments and will hold a public hearing in connection with the proposed determinations. The USTR is requesting comments on specific products in the proposed list and whether they should remain on the list, be removed or whether additional products should be added to the list. They are also seeking comments on the amount of the increased duty rate, whether these additional duties would have an adverse effect on U.S. stakeholders, and the appropriate collective level of trade to be covered by these duties.

Requests to appear at the public hearing and a summary of testimony will be due by May 6, 2019. A public hearing will convene in Washington D.C. on May 15, 2019. Written comments, including post-hearing rebuttal comments, will be due by May 28, 2019.

Congress Calls for “List 3” Exclusion Process to Exempt Section 301 Tariffs

Congress Calls for “List 3” Exclusion Process to Exempt Section 301 Tariffs

On Friday, February 15, President Trump signed the 2019 Consolidated Appropriations Act (H.J. Res. 31) into law, funding the federal government and preventing a second shutdown this year. While most of the media attention focused on the President’s simultaneous declaration of a national emergency with respect to the southern border, those of us in the international trade world focused on a far less public development revealed in the legislation.

Hodes Keating & Pilon to Join Rock Trade Law

We are pleased to announce that, effective March 1, 2019, Michael G. HodesThomas M. Keating, and Lawrence R. Pilon of Hodes Keating & Pilon will be joining Rock Trade Law LLC where they will continue to practice as trade counsel. We are also pleased to announce the addition of a new associate attorney, Sara A. Arami.   

These new attorneys will provide additional veteran expertise and allow us to more effectively service our clients. We also look forward to servicing existing HKP clients with our expanded portfolio of trade services and managed compliance programs.   

In light of the upcoming changes, we will also be moving offices on March 1 into expanded space at 134 N. LaSalle, Suite 1800, Chicago, IL  60602. 

We look forward to continued growth, and thank our loyal clients for their support on this major milestone for our firm.

Should you have any questions concerning these changes, please contact one of the trade professionals listed here 

USTR Announces China Duty Exclusion Process

USTR Announces China Duty Exclusion Process

On July 6, the U.S. Trade Representative (USTR) announced details of the process by which importers can request product exclusions from the 25% duties assessed against China. The USTR's press release stipulates that exclusion requests must be made on a product basis and be submitted prior to October 9, 2018. If granted, the exclusion requests will be retroactive to July 6th and remain in effect for one year. At this time, there is no indication of how long the USTR will take to process the requests.

President Trump Signs Memo Imposing Chinese Tariffs

President Trump Signs Memo Imposing Chinese Tariffs

Today, President Trump signed a presidential memorandum directing a range of actions against China in response to practices involving the unfair and harmful acquisition of U.S technology. This action paves the way for the government to impose tariffs of approximately $50 to $60 billion on imports from China. While the details of products potentially covered by the tariffs are set to be published this coming week, any companies doing business with China should take steps now to evaluate their position and options for moving forward.

Section 301 Tariffs Against China Imminent

Section 301 Tariffs Against China Imminent

President Trump is preparing to impose a package of $60 billion in additional tariffs against China as early as this week. These tariffs come on the heels of the recent announcement of duties imposed on steel and aluminum. The new tariffs are expected to cover more than 100 commodities, potentially including apparel, footwear, furniture, and toys. The Washington Post is reporting that the duties may be assessed as early as this Friday.

CBP Postpones Changes to Reconciliation Program

CBP Postpones Changes to Reconciliation Program

CBP has postponed the January 14, 2017 migration of all reconciliation entry transmissions to the Automated Commercial Environment (ACE). CBP made the announcement after receiving considerable feedback concerning the complexity of this transition, as well as the impact to other programs slated for ACE deployment. The agency is expected to provide a new effective date for the reconciliation transition to ACE in the near future.

Tariff Bill Offers Duty Saving Opportunities

On October 14, the U.S. International Trade Commission (ITC) will start accepting petitions from companies seeking duty reductions or suspensions under the Miscellaneous Tariff Bill (MTB). The MTB provides temporary relief from ordinary import duties on goods that are not produced domestically to improve the competitiveness of U.S. companies.  U.S. importers interested in having one or more of its products potentially included in the MTB will have a limited window of time to file a petition.

CBP Initiating Quicker, More Transparent Investigations for AD/CVD Enforcement

On August 22, 2016, U.S. Customs and Border Protection (CBP) published long-awaited interim regulations implementing the procedures for conducting investigations of alleged antidumping (AD) or countervailing duty (CVD) evasion. These new investigatory procedures were enacted to address ongoing concerns by U.S. producers that AD/CVD duties have been illegally avoided.