The Court of International Trade held oral arguments Dec. 19 in a case filed by steel importers alleging that Section 232 tariffs are unconstitutional (see 1806270036). The American Iron and Steel Institute, which filed an amicus brief in the lawsuit, put out a statement Dec. 19 that said: "We continue to strongly believe this case is without merit and the effort by importers of foreign steel to undermine the Section 232 relief through this case is bound to fail. Congress acted within its constitutional authority when it authorized the president to take action to adjust imports, when the Secretary of Commerce has determined that such imports threaten to impair the national security."
A half-dozen members of the House Ways and Means Committee -- including the outgoing Trade Subcommittee chairman -- sent a letter to U.S. Trade Representative Robert Lighthizer saying the steel and aluminum tariffs on Mexico and Canada need to go. Five Republicans, led by Rep. Jackie Walorski of Indiana, signed the letter, as did Rep. Ron Kind, D-Wis. Kind, whose dairy farming constituents are among those hurt by Mexican retaliation for the tariffs, is interested in leading the Trade Subcommittee next year. They wrote that "we urge you to put the highest priority on lifting the steel and aluminum tariffs and retaliation entirely as soon as possible, and certainly before congressional consideration." The USTR has said he is working on finding a solution to the tariffs on Mexico and Canada, but has not offered a timeline for when agreement might be reached. Only Australia has been given an exemption without a quota so far.
A routine biennial review of U.S. trade policy included sharp criticisms from longtime allies, as 19 countries took the floor at the World Trade Organization, with another 35 expected to do so before the two-day review was finished. The U.S. ambassador to the WTO, Dennis Shea, said the organization is not well equipped to handle the fundamental challenge posed by China, which continues to embrace a state-led, mercantilist approach to the economy and trade. Anticipating criticisms over America's refusal to allow any appointments to the appellate body, he said: "In our assessment, members are in the early stages of grappling with our collective failure to confront problems that have been growing for years."
A corporate farmer, a farmers' lobbyist and a farm economics researcher discussed the politics and pocketbook effects of tariffs in the sector, and how much sway farmers will have in the outcome of trade policy. The trio -- along with former Agriculture Secretary Tom Vilsack -- spoke on a panel at the Council on Foreign Relations Dec. 13. "Farmers want to stay with President Trump. A lot of them supported Trump," said Brian Kuehl, executive director of Farmers for Free Trade. "But I think the trade war is biting. Even for farmers we talk with ... who support the president, that patience is starting to wear thin."
Ten percent tariffs on imported aluminum has driven about 1,000 new jobs, and has not cost jobs among aluminum consumers, according to an Economic Policy Institute report released Dec. 11. One of the aluminum companies that sought Section 232 protection, Century Aluminum, funded the report, and participated in its rollout, through the American Primary Aluminum Association trade group. The report also noted that 22 projects, some expansions, some new, have been announced in rolled and extruded aluminum facilities. These facilities are downstream aluminum, and are not protected by Section 232, though some are protected by antidumping duties. These projects are expected employ more than 2,000 workers when they are open.
The two excluded sectors from planned Europe trade talks -- agriculture and autos -- both want to be included, according to comments filed with the Office of the U.S. Trade Representative ahead of the Dec. 14 public hearing on negotiation priorities. More than 150 organizations and individuals shared their views in the USTR docket ahead of the Dec. 10 deadline for comments.
The U.S. Chamber of Commerce will support the new NAFTA, and will lobby for its passage, the group announced Dec. 10. CEO Thomas J. Donohue wrote that the group will be working to resolve a handful of outstanding issues, but only specifically mentioned the Section 232 tariffs on Mexican and Canadian steel and aluminum. He spent far more time scolding President Donald Trump for his intention to terminate NAFTA "in order to present the incoming Congress with a choice between the new agreement and no agreement. We disagree with this strategy." Donohue wrote, "Issuing this threat against a co-equal branch of government is neither necessary nor productive and could actually cost votes." A prominent free-trade Democrat in the House of Representatives made the same point on Dec. 10 (see 1812100024).
Cable modems that are made up of Chinese parts but assembled in Mexico are subject to the 10 percent Section 301 tariffs on goods from China, CBP said in a Nov. 27 ruling. The ruling request was submitted by Barnes Richardson lawyer Lawrence Friedman on behalf of Zoom Telephonics. CBP's analysis is on two types of modems, one type that includes a Wi-Fi gateway and one that does not. The modems are Data Over Cable Service Interface Specification (DOCSIS) 3.1 and compatible with several major cable systems, including Comcast and Cox, it said.
Automakers, titanium producers and drug industry players shared diverging views inside their respective sectors of how Office of the U.S. Trade Representative negotiators should approach a U.S.-Japan free trade agreement. The department invited the public to share opinions Dec. 10 on what priorities negotiators should pursue, and how the new deal should be similar or diverge from the path forged for the U.S.-Mexico-Canada Agreement and the Trans-Pacific Partnership. Autos are the single biggest import from Japan, making up $51 billion of the $136 billion in goods imports in 2017, according to USTR.
Importers paid more than $6 billion total in tariffs in October, the first full month that there were additional tariffs on $200 billion in Chinese goods, according to an analysis from Tariffs Hurt the Heartland. The group said that amount -- which is $3.1 billion more than was paid in October 2017 -- has not slowed imports on the tariffed goods, but has drastically cut exports that are subject to retaliatory tariffs. The group is funded in part by farm interests, who have been particularly hard-hit by retaliation. Their Dec. 7 release said that imports subject to new tariffs declined 0.6 percent in October, while exports targeted for retaliation fell 37 percent. About two-thirds of the increase is for Section 301 tariffs, while steel and aluminum tariffs cost an additional $446 million. The goods on the Section 301 list would have cost $394 million in tariffs before the action; in October, tariffs on those imports were $2.6 billion. CBP recently said it has assessed more than $10 billion under the recent Trump administration Section 201, 232 and 301 trade remedies (see 1811260010).