The removal of Ukraine from the countries whose steel exports face 25% tariffs, announced in early May (see 2205090041), will take effect on June 1. A presidential proclamation said Ukrainian steel that is in foreign-trade zones and entered under foreign privileged status will still face 25% Section 232 tariffs when it enters into commerce after that date. The break from national security tariffs will last one year, the proclamation said.
Almost 40 agricultural trade groups, along with two port and perishable logistics trade groups, asked the U.S. trade representative to reduce, lift or suspend tariffs so that China would lift its retaliatory tariffs on U.S. crops. “Tariff relief could not come at a more important time,” the trade groups said in a letter. “Rural America and small businesses are facing significant challenges due to the lingering impacts of the COVID-19 pandemic, logistical and supply chain disruptions, record levels of inflation, and the increasing impacts of Russia’s war on Ukraine. "
The Court of International Trade dismissed two cases brought by steel importer Voestalpine USA and steel purchaser Bilstein Cold Rolled Steel seeking to retroactively apply a Section 232 steel and aluminum tariff exclusion that was originally issued with a clerical error. Judge Mark Barnett said that the plaintiffs did not seek any relief that the court could grant since the entries eligible for the exclusion had already been liquidated, and the court does not have the power to order their reliquidation.
The following lawsuits were filed at the Court of International Trade during the week of May 9-15:
While the Biden administration faces very little legal constraint to continuing the Section 301 tariffs on the vast majority of Chinese imports, trade experts at the Wiley firm said that the administration is under pressure for a variety of reasons to make a decision on whether they are going to change their approach to the tariffs. So far, the Office of the U.S. Trade Representative has reinstated fewer than 500 exclusions, either due to the COVID-19 pandemic or to a limited review, and has not offered to renew the bulk of the 2,129 exclusions that were granted during the previous administration.
The International Trade Commission published notices in the May 10 Federal Register on the following AD/CV injury, Section 337 patent or other trade proceedings (any notices that warrant a more detailed summary will be in another ITT article):
When the Biden administration announced that the U.S. would roll back 25% tariffs on Ukrainian steel for one year, following the U.K. and the EU, there was no pushback from steel interests, and praise from Senate Finance Committee Chairman Ron Wyden, D-Ore.. He issued a statement that said, "As Ukraine continues to valiantly fend off Russia's brutal invasion, it is important that the United States do everything it can to support the Ukrainian economy. Removing the Section 232 tariffs is an appropriate and welcome move from the Biden Administration that makes clear our primary concern is with China's overcapacity, not the people of Ukraine."
Commerce Secretary Gina Raimondo said that the Section 232 25% tariffs on Ukrainian steel will be temporarily lifted. "For steel mills to continue as an economic lifeline for the people of Ukraine, they must be able to export their steel," she said. "Today’s announcement is a signal to the Ukrainian people that we are committed to helping them thrive in the face of Putin’s aggression, and that their work will create a stronger Ukraine, both today and in the future." The tariff reprieve will last one year.
The International Trade Commission will produce a report by March 15 next year on the economic impact of Section 301 and Section 232 tariffs on U.S. prices, trade and production in the industries most affected by the tariffs. The commission announced that it will hold a public hearing on July 21, and that requests to appear at that hearing should be filed by July 6. It also will accept written submissions on the topic through Aug. 24.
House Ways and Means Chairman Richard Neal, D-Mass., would also be open to lowering or lifting tariffs on at least some Ukrainian goods, he said during a hallway interview at the Capitol on April 28. Neal said he had just left a meeting with the president of Georgia, and she had told him the U.S. support for Ukraine needed to last. The U.K. has lifted tariffs on all Ukrainian imports, and the EU's parliament is considering doing the same.