Tariff Actions Resource Page

 

 

 

Updated June 3, 2019

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ST&R Trade Report

This page features information, deadlines and resource documents on the various U.S. tariff actions and the responses by the rest of the world.

The “U.S. Actions” section includes information on the Section 232 investigations of steel and aluminum, automobiles and auto parts, and uranium. It also includes information on the Section 301 investigations of China and the EU, as well as the tariffs on Mexico under the International Emergency Economic Powers Act.  In the “Retaliatory Actions” section, find lists of all affected products.

If you’d like an ST&R professional to narrow down the information to what’s relevant and actionable for your company, don’t hesitate to contact us.

U.S. Actions: Tariffs on Mexico, Section 301 Tariffs, Section 232 Tariffs

Tariffs on Mexico

New: Evolving Situation

On the evening of May 30, in an effort to push Mexico to address immigration issues, the White House announced that a 5% tariff will be imposed on goods from Mexico effective June 10.  If Mexico’s response is not deemed sufficient, tariffs will be increased by 5% each month, up to 25%. Rates will remain at 25% thereafter until Mexico “substantially stops the illegal inflow of aliens coming in through its territory.”

The president asserts this action under the International Emergency Economic Powers Act of 1977, which has previously been utilized to freeze or block assets of foreign governments or nationals.

We anticipate this action to mean additional tariffs on top of existing rates of duty, including on NAFTA qualifying goods, but this is an evolving situation. We expect a federal register notice prior to initiation of these tariffs, with additional details clarifying the scope of the action. This page will be updated when more information is known.

Latest News

Section 301 Tariffs on China

A Section 301 investigation determined that China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation are unreasonable and discriminatory.

Product Lists

Section 301 Tariff: List 4 
On May 5, 2019, President Trump issued a tweet threatening to “shortly” put a 25% tariff on all remaining Chinese imports.

On May 13, 2019, USTR released a list with an import value of approximately $300 billion on which USTR is proposing to impose Section 301 additional tariffs of up to 25 percent.

This list of 3,805 full and partial HTSUS subheadings covers essentially all products not already subject to Section 301 additional tariffs.  It includes all apparel, footwear, and manufactured textile products, among others, but excludes pharmaceuticals, certain pharmaceutical inputs, select medical goods, rare earth materials, and critical minerals.

Companies may submit comments requesting subheadings be excluded from this action and / or providing input on the specific tariff levels that should be imposed. These are due by June 17. USTR will hold a public hearing on this proposal June 17 and requests to appear at this hearing are due June 10. The tariff hike could be implemented any time after June 24 in any amount up to 25 percent, on top of the regular rate of duty.

ST&R has extensive experience assisting companies with requesting exclusions from the Section 301 tariff increases. Contact us for assistance.

Section 301 Tariff: List 3 
List 3 products, with a total import value of $200 billion, were subject to an additional 10 percent tariff as of September 24, 2018. That tariff had been scheduled to rise to 25 percent as of January 1, 2019, but was delayed to March 2, 2019 and then put on hold due to “substantial progress” in trade talks.

New! Following a breakdown in trade talks in May 2019, the tariff was increased to 25 percent. This was originally due to apply to goods exported before May 10 and entered before June 1. However, as of a June 3, 2019 press release, USTR has extended that entry date to goods exported prior to May 10 and entered before June 15.

There will be an exclusion process for List 3 products. While no formal notice of the exclusion process exists, a separate 5/21 USTR notice requesting approval of the forms that will have to be used to submit and respond to such requests has been published. That notice indicates that requests for exclusion will require much more information than has been required for List 1 and List 2 goods.

Importers should evaluate exposure and seek ways to mitigate the impact of this tariff increase through early importation or entry, tariff classification, tariff engineering, first sale, product exclusion requests, and other methods. Contact us for assistance.

Section 301 Tariff: List 2
List 2 products, with a total import value of $16 billion, were subject to an additional 25 percent tariff as of Aug. 23, 2018. The deadline for requesting exclusions from this increase was December 18, 2018. As of the latest update (May 31, 2019), no exclusions have been granted, but 1259 requests have been denied, and 1661 requests are still undergoing review.

Section 301 Tariff: List 1
List 1 products, with a total import value of $34 billion, were subject to an additional 25 percent tariff as of July 6, 2018. The deadline for requesting exclusions from this increase was Oct. 9, 2018. Any exclusions granted are retroactive to July 6, 2018, and remain in place for one year after the exclusion determination is published in the Federal Register. This has resulted in 214 HTS exclusions, some of which are product specific and others that cover entire subheadings. 2118 exclusion requests are still undergoing review as of May 31, 2019. Please see List 1 – Exclusion Requests Granted.

Latest News

Exclusion Request Form

Official Documents

List 4

List 3 

List 2 

List 1 

Other

Dates & Deadlines

List 1  Date
25% duty effective on List 1 items July 6, 2018
Deadline to request exclusions October 9. 2018

 

List 2 Date
Comments on specific subheadings due July 23, 2018
Deadline to request to appear at hearing June 29, 2018
Pre-hearing submissions due June 29, 2018
Hearing on List 2 products July 24, 2018
Post-hearing rebuttal comments due July 31, 2018
25% duty effective on List 2 products August 23, 2018
Deadline to request exclusions December 18, 2018

 

List 3 Date
Deadline for filing requests to appear at hearing and summary of expected testimony August 13, 2018
(previously July 27, 2018)
Hearing on List 3 products August 20 – 27, 2018
(extended from August 20 – 23)
Post-hearing rebuttal comments due September 6, 2018
(previously August 30, 2018)
Due date for submission of written comments September 6, 2018
(previously August 17, 2018)
10% duty effective on List 3 products September 24, 2018
USTR reports the nature & timing of exclusion process to Congress March 17, 2019
(USTR did not meet deadline)
25% duty effective on List 3 products May 10, 2019
(previously January 1, 2019 & March 2, 2019)
Exclusion process details released TBD
Exclusion process begins TBD
Deadline to request exclusions TBD

 

List 4 Date
Deadline for requests to appear at the public hearing June 10, 2019
Public hearing on List 4 products June 17, 2019
Written comments due, including input on the specific tariff levels that should be imposed and requests to exclude specific subheadings June 17, 2019
Post-hearing rebuttal comments June 24, 2019
(or 7 days after the last day of the public hearing)
Tariffs begin TBD, may be any time after June 24, 2019

Section 232 Tariffs on Steel & Aluminum

Effective June 1, 2018, additional tariffs of 25 percent and 10 percent on steel and aluminum imports were imposed for almost all countries. As of May 20, 2019, steel and aluminum products from Canada and Mexico are not subject to the additional tariffs. The following products are covered by these proclamations.

  • steel articles classified under HTSUS subheadings 7206.10 through 7216.50, 7216.99 through 7301.10, 7302.10, 7302.40 through 7302.90, and 7304.10 through 7306.90, including any subsequent revisions to these HTSUS classifications
  • the following aluminum articles: (a) unwrought aluminum (heading 7601); (b) aluminum bars, rods, and profiles (heading 7604); (c) aluminum wire (heading 7605); (d) aluminum plate, sheet, strip, and foil (flat rolled products) (headings 7606 and 7607); (e) aluminum tubes and pipes and tube and pipe fitting (headings 7608 and 7609); and (f) aluminum castings and forgings (HTSUS 7616.99.5160 and 7616.99.5170), including any subsequent revisions to these HTSUS classifications

Countries and/or companies negatively impacted by these additional tariffs can petition for an exclusion.

Legislation to limit the authority of the President to modify duty rates for national security reasons has been introduced in the Senate and House – see below section on U.S. Legislation to Restore Congressional Oversight on Trade for the full text. Companies interested in backing this legislation may contact Nicole Bivens Collinson by email or at (202) 730-4956 for more information.

Latest News

Exclusion Request Forms

Official Documents

Section 232 Investigation of Automobiles & Auto Parts

The Department of Commerce announced May 23, 2018 its self-initiation of an investigation under section 232 of the Trade Expansion Act of 1962 to determine whether imports of automobiles (including SUVs, vans, and light trucks) and auto parts are harming U.S. national security.  The results of the investigation were submitted to President Trump on February 17, 2019.

On May 17, 2019, President Trump announced that he is delaying a decision for 180 days. During that time the U.S. plans to hold talks with the European Union, Japan, and possibly others that will likely seek to reduce imports from those countries. According to the proclamation, the DOC determined that U.S.-owned auto producers’ share of the domestic and global markets has fallen sharply in recent decades, which decreases the sales revenues that enable the research and development expenditures necessary for long-term automotive technological superiority, which in turn is essential for national defense.

Legislation to limit the authority of the President to modify duty rates for national security reasons has been introduced in the Senate and House – see below section on U.S. Legislation to Restore Congressional Oversight on Trade for the full text. Companies interested in backing this legislation may contact Nicole Bivens Collinson by email or at (202) 730-4956 for more information.

Latest News

Section 232 Investigation of Uranium

The Department of Commerce announced July 18, 2018 its self-initiation of an investigation under section 232 of the Trade Expansion Act of 1962 to determine whether the present quantity and circumstances of uranium ore and product imports threaten to impair U.S. national security.

If the DOC (which must consult with the Department of Defense) concludes that uranium products are being imported in such quantities or under such circumstances as to threaten to impair U.S. national security, and the president concurs, the president would have broad authority to adjust imports, including through the use of tariffs and quotas.

The results of the investigation were submitted to President Trump on April 14, 2019. Neither those results nor the DOC’s recommendations have yet been made public. The president now has up to 90 days to decide whether to take action on the case, and any resultant actions would be imposed within 15 days of the president’s determination to act.

Latest News

Official documents

Section 301 Tariffs on the EU – Aircraft Dispute

In May 2019, the World Trade Organization ruled that European Union subsidies to Airbus have caused adverse affects to the United States. On April 8, 2019, USTR identified a preliminary list of EU products to which additional duties may be applied. The estimated import value of the goods on the preliminary list was approximately $21 billion in 2018.

USTR estimates the harm from the EU subsidies at $11 billion in trade each year, but the EU has challenged that figure. A final decision from a WTO arbiter is expected this summer, and the final list will reflect only the amount of trade found to be adversely affected in the arbitrator’s decision.

Importers with goods on this list should consider taking proactive measures to mitigate the impact of any potential tariff increase, such as working to have their products omitted from the final list or considering alternative sourcing locations. For assistance in this effort, please contact Kristen Smith at (202) 730-4965.

The EU has published their own preliminary list of U.S. products on which the EU could impose additional tariffs of up to 100 percent as part of this dispute, which you can find here and in the Retaliatory Actions section below.

Latest News

Product List

Official Documents

Dates & Deadlines

Item Date
Due date for submission of requests to appear at the public hearing and summary of testimony May 6, 2019
Section 301 Committee Public Hearing May 15, 2019
Due date for submission of written comments, including post-hearing rebuttal comments May 28, 2019

U.S. Legislation that Could Affect Section 232 & Section 301 Tariffs

Companies interested in supporting any or all of the below legislation should contact Nicole Bivens Collinson by email or at (202) 730-4956.

Proposed Legislation Affecting Section 232 and 301

Legislation has been introduced in the Senate to limit the authority of the President to modify duty rates for national security reasons and to limit the authority of the United States Trade Representative to impose certain duties or import restrictions.

Proposed Legislation Affecting Section 301

Legislation has been introduced in the Senate and House to require the establishment of a process for excluding articles imported from China from certain 301 duties.

Proposed Legislation Affecting Section 232

Legislation has been introduced in the Senate and House to impose limitations on the authority of the President to adjust imports that are determined to threaten or impair national security.

Retaliatory Actions

The U.S. faces retaliatory actions from China, the EU, India, Turkey and Russia. Find affected products by viewing our Mega Matrix. The Mega Matrix does not contain products on the 301 Airbus retaliation list proposed by the EU in April 2019.

Prior to May 20, 2019, the U.S. faced retaliatory actions from Canada and Mexico in addition the countries named above. However, all retaliatory tariffs from Canada and Mexico have now been eliminated.

Click the list name below to view products by country along with tariff rates.

Latest News

Country / Region

Product List

Effective Date

China 232 Retaliation List April 2, 2018
China 301 Retaliation List One
Released June 16, 2018
July 6, 2018
China 301 Retaliation List Two, Version 1
Released June 16, 2018

301 Retaliation List Two, Version 2
Released August 8, 2018

August 23, 2018
China 301 Retaliation List 3.1 – 10% & 25% Tariff

301 Retaliation List 3.2 – 10% & 20% Tariff

301 Retaliation List 3.3 – 5% & 10% Tariff

301 Retaliation List 3.4 – 5% & 5% Tariff (no rate change)

Released August 3, 2018
Finalized September 17, 2018
Amended May 13, 2019

September 24, 2018 at lower tariff rate specified

June 1, 2019 at higher tariff rate specified

EU 232 Retaliation List One June 22, 2018
EU 232 Retaliation List Two March 23, 2021
EU 301 Airbus Retaliation

Released April 17, 2019

TBD – level of damages depends on WTO arbitration verdict expected in late 2019 or early 2020.
India 232 Retaliation List April 1, 2019
(previously June 21, 2018, September 18, 2018, November 2, 2018, December 17, 2018 & March 2, 2019)
Turkey 232 Retaliation List
Certain Duties Doubled as of August 15, 2018
June 21, 2018
Russia 232 Retaliation List August 5, 2018

© 2019, Sandler, Travis & Rosenberg, P.A.
Reprinted by permission.

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