Deep in the White House budget proposal, the administration projects that after collecting $93 billion in duties in the current fiscal year, only $54 billion will be collected between Oct. 1 and Sept. 30, 2023. It projects collections would drop further to $46 billion in fiscal year 2024 before gradually climbing to $60 billion in 2032. Last year's budget projected that there would only be $57 billion in duties collected in this fiscal year, and $45 billion next fiscal year.
The tariff rate quota arrangement that the U.S. offered the U.K. covers a higher volume of steel than the U.K. exported to the U.S. in 2018 and 2019, though those quotas also cover steel with EU country of origin that was melted and poured in the U.K.
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.
The U.S. and U.K. reached an agreement that will drop Section 232 tariffs on steel and aluminum imports from the U.K. Under the deal, the U.S. will allow “historically-based sustainable volumes” of U.K. steel and aluminum goods to enter the country, the Commerce Department said, adding that it will lift the tariffs June 1. The U.S. will also require any U.K. steel company owned by a Chinese entity to undergo a financial audit “to assess influence” from the Chinese government.
The top trade official in the British government and U.S. Trade Representative Katherine Tai said they want to do even more trade and investment between the two countries, even as a free-trade agreement is not the end goal. Secretary of State for International Trade Anne-Marie Trevelyan had hoped that the Biden administration would continue the free trade negotiations started during the Trump administration, but that has not happened. Marjorie Chorlins, who leads the U.S.-U.K. Business Council at the U.S. Chamber of Commerce, also spoke at the March 21 plenary in Baltimore, saying the business community strongly supports more U.S.-U.K. economic cooperation.
The Court of International Trade on March 18 dismissed a lawsuit brought by a domestic pipe producer seeking to compel CBP to provide it with information related to an alleged duty evasion scheme by two importers. Judge Timothy Stanceu said that while the trade court did have jurisdiction to hear the case, Wheatland Tube Company improperly submitted its requests for information to CBP, and the agency properly rejected Wheatland's request to revoke a ruling letter.
The Bureau of Industry and Security will give stakeholders another 30 days to weigh in on procedures for evaluating the granting or denial of Section 232 tariff exclusions on imports of steel and aluminum, it said in a Federal Register notice to be published March 16. Comments can be submitted beginning that date at www.reginfo.gov/public/do/PRAMain, OMB Control Number 0694-0138.
The Commerce Department hasn't granted a steel or aluminum tariff exclusion since Dec. 17, 2021, and its last denial was posted Oct. 29, 2021. A lobbyist in the trade world said he has unsuccessfully tried to get to the bottom of why the Bureau of Industry and Security doesn't seem to be processing the applications at the moment. He said the Commerce Department told one office on Capitol Hill "there is no problem" and "that it's all functioning normally."
China's lack of worker rights, weak environmental standards "and anticompetitive subsidies are the hallmarks of China’s artificial comparative advantage. It is an advantage that puts others out of business and violates any notion of fair competition," the annual trade policy agenda from the Office of the U.S. Trade Representative said, and the administration is looking to advance fair competition "through all available avenues," including coordinating with other countries, using existing trade agreements, or new tools, it said.
The following lawsuits were filed at the Court of International Trade during the week of Feb. 21-27: