President Donald Trump threatened, in a tweet April 23, to match European Union tariffs on motorcycles, as he reacted to Harley-Davidson corporate earnings news. He wrote: "Harley Davidson has struggled with Tariffs with the EU, currently paying 31%. They’ve had to move production overseas to try and offset some of that Tariff that they’ve been hit with which will rise to 66% in June of 2021. So unfair to U.S. We will Reciprocate!" As free-trade advocates noted on Twitter, the EU tariff is one of the tariffs that was raised because of the U.S.'s Section 232 tariffs on aluminum and steel.
International Trade Today is providing readers with some of the top stories for April 15-19 in case they were missed.
A U.S. producer of titanium sponge is using the Section 232 petition process as a way around a previous International Trade Commission finding, Japan said in comments in response to the petition. The Section 232 petition, filed by TIMET, asked the Commerce Department to get Japan to agree to a reference price 30 percent or more above current prices (see 1904100032). "Section 232 of Trade Expansion Act should not be used to justify circumvention of anti-dumping rules or disguised protectionism policy," Japan said. Nearly all of the filings have so far have opposed TIMET's request.
CBP has assessed about $22.6 billion in duties under the major trade remedies started during the Trump administration as of April 10, a CBP spokeswoman said. That includes $15.3 billion in duties from the Section 301 tariffs on goods from China, she said. The first tranche of Section 301 tariffs took effect on July 6, 2018 (see 1807050033); the second took effect on Aug. 23, 2018 (see 1808070046); and the third, on Sept. 24, 2018 (see 1809240015). CBP also has assessed about $5 billion under the Section 232 tariffs on steel and $1.6 billion under tariffs on aluminum as of Oct. 16, 2018, the spokeswoman said. The Section 201 trade remedies on washing machines and solar cells (see 1801230052), imposed Jan. 23, 2018, account for $725 million in assessed tariffs, she said.
CBP issued the following releases on commercial trade and related matters:
President Donald Trump, speaking at an April 15 rally designed to celebrate the tax law's changes, continued to threaten the European Union with car taxes if it doesn't change its policies. "We're in massive trade negotiations, as you know, because our farmers haven't been treated properly for many years," he said. He then said negotiations with China are going well, but said the EU needs to recognize things are different now.
International Trade Today is providing readers with some of the top stories for April 8-12 in case they were missed.
SAN ANTONIO, Texas -- A lawsuit challenging the new CBP drawback regulations that limit drawback on goods subject to excise taxes (see 1812190011) is expected soon, Sandler Travis lawyer Michael Cerny said on a panel at the National Customs Brokers & Forwarders Association of America's annual conference on April 16. CBP is saying "the export of excise-tax-free goods is considered a drawback, therefore you can't get a second drawback of that through substitution," Cerny said. "This is going to be challenged," and he said he expects a lawsuit within "the next few weeks." The excise tax changes became effective on Feb. 19, 2019.
A group of steel importers will take their challenge of Section 232 tariffs on iron and steel products to the Supreme Court, according to a petition for certiorari dated April 15. The American Institute for International Steel and two of its members argue in the filing that their recently filed U.S. Court of Appeals for the Federal Circuit appeal would be a waste given that the case would likely end up before the Supreme Court anyway. They also say the ongoing harm to the steel industry and the potential for new Section 232 tariffs on cars and auto parts mean a final decision is needed as soon as possible.
Mexico's Economy Secretary Graciela Márquez, according to a readout supplied by the Mexican government on April 12, asked Commerce Secretary Wilbur Ross to work toward reaching an agreement on a new tomato suspension agreement as quickly as possible (see 1902070024). The release said both officials agreed that Commerce is seeking to negotiate an agreement that is in the interests of both countries.