Pennsylvania Republican Sen. Pat Toomey, who chose to retire from the Senate, warned that Section 232 tariffs -- and the economic costs they impose on downstream users of steel -- are "about to get much worse," because there was no interest in passing reforms to the statute.
A World Trade Organization dispute settlement panel found the U.S. violated global trade rules by requiring goods made in Hong Kong to be marked as being made in China. Submitting its ruling Dec. 21, the three-arbitrator panel found the U.S. measures inconsistent with the General Agreement on Tariffs and Trade, saying the U.S. failed to show the moves were made in response to an "emergency in international relations." The U.S. argued the change in the origin requirement was needed to safeguard American national security.
International Trade Today is providing readers with the top stories from last week in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
U.S. Trade Representative Katherine Tai, in a Q&A with members of the Council on Foreign Relations, said the U.S. needs the EU to succeed in developing its green transition technologies, just as the EU needs the U.S. to succeed in that arena.
As carmakers, battery companies and critical minerals supply chain players await news from the Treasury Department on the details of how vehicles and batteries will become eligible for electric vehicle tax credits, a major South Korean carmaker sounded the alarm that the new Inflation Reduction Act could make its planned Georgia plant unprofitable.
International Trade Today is providing readers with the top stories from last week in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
Although some observers thought the Office of the U.S. Trade Representative's reaction to losing cases filed by Norway, Switzerland, Turkey and China at the World Trade Organization over its steel and aluminum tariffs marked a new era of rejecting the rules-based trading system, others who had served either in the WTO or the U.S. government said there was nothing too surprising about the U.S. reaction to its loss.
In a briefing to members of the European Parliament, the European Commission's top trade official, Valdis Dombrovskis, said he expects the negotiations with the U.S. over the discriminatory aspects of the Inflation Reduction Act to partially, but not fully, resolve EU concerns.
The World Trade Organization issued a series of four rulings Dec. 9 finding that the U.S. Section 232 steel and aluminum tariffs set by President Donald Trump violated global trade rules. In the landmark rulings, a three-person panel found that the duties violated Articles I, II, XI and XXI of the General Agreement on Tariffs and Trade. The dispute panel said the tariffs, which the Trump administration said were needed to maintain U.S. national security, were not "taken in time of war or other emergency in international relations," as mandated by Article XXI(b)(iii) of national security protections, so the duties violate the GATT.
A report from Republicans on the Joint Economic Committee in Congress said that while the Federal Reserve is doing the right thing to drive down inflation, Congress should act to remove Section 301 tariffs on Chinese imports, and Section 232 tariffs on steel and aluminum. "These 2018-2020 era tariffs are currently in effect on $280 billion of U.S. imports, imposing a $50 billion annual cost burden on U.S. producers and consumers that use imported goods. Estimates suggest that removing recently imposed tariffs on imports from China, steel and aluminum imports, and Canadian lumber imports could deliver a one-time inflation reduction of 1.3 percentage point," the report said. There is no mechanism for Congress to roll back the softwood lumber duties, as they are antidumping and countervailing duties. However, the U.S. used to lower the trade remedies when the cost of lumber rose above certain thresholds.