Trade groups, companies and a union that represent the aluminum and steel sectors told the Office of the U.S. Trade Representative that they need more protection from import competition, by expansion of the scope of Section 232 tariffs, and by re-negotiation of the rules of origin in both trade agreements and the Section 232 exclusion for Canada and Mexico.
Mara Lee
Mara Lee, Senior Editor, is a reporter for International Trade Today and its sister publications Export Compliance Daily and Trade Law Daily. She joined the Warren Communications News staff in early 2018, after covering health policy, Midwestern Congressional delegations, and the Connecticut economy, insurance and manufacturing sectors for the Hartford Courant, the nation’s oldest continuously published newspaper (established 1674). Before arriving in Washington D.C. to cover Congress in 2005, she worked in Ohio, where she witnessed fervent presidential campaigning every four years.
Former Sen. Chris Dodd, special presidential adviser for the Americas, said that the administration welcomes the Americas Act (see 2403060033), a bill that proposes setting country-by-country de minimis levels, and instructs the administration to reconsider U.S. tariffs "with the focus on the principle of reciprocity" for most favored nation rates and to open a dialogue with Mexico and Canada on allowing Costa Rica and Uruguay to join USMCA. It also would exclude Chinese and Russian shippers from de minimis eligibility, allow Ecuador and Uruguay to use Caribbean Basin Trade Partnership Act tariff benefits for certain goods, "with the goal of an eventual full-scale FTA with Uruguay and Ecuador," and asks the administration to make it so goods across Western hemisphere free trade agreements could cumulate among those agreements -- so Costa Rican content could be added to Colombian and Mexican content, for instance.
Sens. Catherine Cortez-Masto, D-Nev., and Marsha Blackburn, R-Tenn., would like to get a removal of the tariff on titanium sponge attached to the must-pass Federal Aviation Administration authorization bill. There is a 15% tariff on titanium sponge. Timet, a Nevada company, once tried to get quotas applied to titanium sponge imports through a Section 232 action (see 2002280047) and also had a failed trade remedy case; it no longer makes titanium sponge.
The subcommittee that covers intellectual property issues under the House Judiciary Committee questioned how Congress should address the escalating volume of de minimis packages -- and the opportunities those shipments provide for sending counterfeits and goods made with forced labor, but the CBP witness responsible for de minimis and IP declined to back any of the ideas that were bandied about.
Rep. Adrian Smith, R-Neb., said that despite Democratic opposition in the House Ways and Means Committee to a package of bills renewing and altering the Generalized System of Preferences benefits program, he expects there will be enough support for the bill to pass under suspension of the rules, which requires two-thirds of the House. Most bills this year have passed under suspension of the rules, rather than with a rule fashioned by the very narrow Republican majority. Smith said GSP works well to get its beneficiary countries to treat U.S. exports more favorably.
A bill that would impose new requirements for e-commerce platforms to detect and police counterfeits, Shop Safe (Stopping Harmful Offers on Platforms by Screening Against Fakes in E-commerce), will be moving through the House Judiciary Committee "in the next few weeks," Rep. Darrell Issa, R-Calif., said May 7. Issa, who chairs Judiciary's Subcommittee on Courts, Intellectual Property, and the Internet, spoke to International Trade Today after a hearing his subcommittee held on the administration's response to counterfeits.
House Ways and Means Committee Chairman Rep. Jason Smith and Trade Subcommittee Chairman Rep. Adrian Smith called out U.S. Trade Representative Katherine Tai for the lengthy wait for the Section 301 tariffs review, which officially started in July 2022 after a round of comments that year in May in favor of extending the action.
Automakers and their trade groups cautioned the Bureau of Industry and Security to tailor its restrictions narrowly -- and allow a phase-in -- if they want manufacturers to stop buying information technology components from China for cars with advanced features, including electric cars.
Canadian Solar, which is ramping up a 5-gigawatt solar panel manufacturing factory in Texas, told the Office of the U.S. Trade Representative that tariff rate quotas on solar cells under the current safeguard action and Section 301 tariffs on machinery that helps make solar panels and cells are harming solar manufacturers. Canadian Solar also is working on opening a solar cell plant in Indiana, but it won't open until late 2025. It imports cells made in Thailand. The TRQ only allows five gigawatts' worth of tariff-free cells in annually.
In the first third of its first public hearing on promoting supply chain resilience, the Office of the U.S. Trade Representative and interagency officials heard from groups disputing the premise of the project -- that liberalizing trade was harmful to U.S. workers and manufacturing -- and from those who say the worker-centered trade approach of the Biden administration is not going far enough to restore American manufacturing.