Extended exemptions from Section 232 tariffs on aluminum and steel left some countries and importers relieved, but others uncertain as to what is around the corner on June 1. Announced the evening of April 30 just hours before the deadline, the proclamations on steel and aluminum announce full, if undefined, exemptions for Argentina, Brazil and Australia, the final details of a steel exemption for South Korea, and a delay until the beginning of June 1 for Canada, Mexico and the European Union.
President Donald Trump extended exemptions from Section 232 duties on steel and aluminum until June 1 for the European Union, Canada and Mexico. He also announced the U.S. has reached agreements in principle on exemptions from tariffs for Brazil, Argentina and Australia, alongside a final agreement on steel tariffs with South Korea.
Canada is publishing regulatory changes expanding the scope of steel and aluminum products that have to be marked with their country of origin, harmonizing the list with U.S. requirements, according to a press release from the prime minister's office. The move comes amid other measures related to steel and aluminum, including more than $30 million in additional funding to the Canada Border Services Agency and Global Affairs Canada to bolster the country's efforts "to prevent transshipment and diversion of unfairly priced foreign steel and aluminum into the North American market," it said. The new funding, which will be set at $6.8 million annually for five years, will pay for more than 40 new officers to investigate trade complaints. This April 26 announcement follows one in March (see 1803270026) also designed to address America's concerns about illegally subsidized steel and aluminum imports, the subject of the Section 232 action.
Discussions of auto rules of origin are getting more specific as NAFTA talks continue, according to Canada's Foreign Minister Chrystia Freeland, who spoke to reporters outside the headquarters of the Office of the U.S. Trade Representative on April 25. "We are starting to get into a more detailed conversation, which is absolutely necessary, given the fiendish complexity of rules of origin for cars -- and I think it's a really good thing we're starting to dig into the details," she said. Some say that the U.S. has compromised very little on its higher rules-of-origin demands (see 1804230048), as U.S. Trade Representative Robert Lighthizer is not convinced by auto companies' complaints.
It’s of the “utmost importance” that importers ensure their mailing addresses in ACE and Automated Clearinghouse (ACH) numbers are up to date as CBP begins processing refunds for entries during the recent lapse in the Generalized System of Preferences program, a CBP official said on CBP’s biweekly ACE call held April 26. CBP prefers that the information be updated electronically, as processing of paper requests may not happen until after refunds checks have been cut and mailed, which should happen for most filers by mid-July, the official said.
Benefits under the Generalized System of Preferences (GSP) mostly won't apply to goods subject to recently implemented tariffs on solar panels, washing machines, aluminum and steel, said CBP in on its website. President Donald Trump imposed new Section 201 safeguard tariffs on imports of large residential washers and solar cells and modules in January and Section 232 tariffs on steel and aluminum in March.
President Donald Trump told reporters April 24 that he wishes he could make a trade deal just with France, because trade with the European Union "has been unfair for a long time," but that his Cabinet is negotiating with the EU around the Section 232 tariffs on steel and aluminum. On NAFTA, Trump said, "NAFTA as you know is moving along. We're doing very nicely with NAFTA. We could make a deal very quickly, but I'm not sure that's in the best interest of the United States. We'll see what happens."
The U.S. asked China to end its import restrictions on scrap and asked it to consider less trade-restrictive measures at the World Trade Organization. The European Union began the discussion about China's actions on recycled materials, and received support from five other countries critical of the practice. Countries that send scrap to China have been complaining at the WTO for months (see 1708220009), and although it did not end up banning waste imports, the restrictions it did impose are having "a huge impact on the global recycling chain," South Korean representatives said at the WTO on April 20. These restrictions are separate from the 25 percent tariff China is levying on U.S. aluminum scrap in retaliation for the Section 232 tariffs. The Institute of Scrap Recycling Industries says that the U.S. exported $2.34 billion in aluminum scrap in 2017, and about half of those exports went to China.
International Trade Today is providing readers with some of the top stories for April 16-20 in case they were missed.
CBP will have the ability to grant up to 300 days to reject entry summaries that are subject to new or coming tariffs, CBP said in a CSMS message. CBP will allow for up to 300 days, "with supervisory approval," for "rejecting entry summaries subject to import measures under Sections 201 and 301 of the Trade Act of 1974, and Section 232 of the Trade Expansion Act of 1962," CBP said. CBP also extended the time period for rejecting antidumping/countervailing duty entry summaries to 300 days "with supervisory approval," it said.