Trade Cases

On the Heels of 232, Trump Announces More Tariffs on China
Written by Tim Triplett
March 22, 2018
President Trump signed a memorandum Thursday directing the U.S. Trade Representative to recommend tariffs on $50 billion to $60 billion of Chinese goods. In addition to the tariffs, the United States also plans to restrict Chinese invesment in the U.S. and to take action against China at the World Trade Organization, according to press reports.
Even before the dust had a chance to settle over Trump’s announcement that seven other countries will join Canada and Mexico on the list of those exempt from the Section 232 steel tariffs, the administration revealed plans for action under Section 301 of the U.S. Trade Act of 1974, which gives the president wide latitude to retaliate against any act or practice of a foreign government that violates international fair trade standards. The U.S. government has long contended that the Chinese are guilty of currency manipulation and theft of intellectual property, as well as the subsidizing and dumping of goods, such as steel and aluminum, on the world market.
The president directed the USTR to publish a list within 15 days of the Chinese products he recommends be subject to new tariffs, which would kick in following a 60-day consultation period. Treasury Secretary Steven Mnuchin also has 60 days to propose restrictions on Chinese investment in sensitive U.S technology.
Chinese officials were quick to issue a statement condemning the move by the U.S.: “China does not want a trade war with anyone. But China is not afraid of and will not recoil from a trade war. If a trade war were initiated by the U.S., China would fight to the end to defend its own legitimate interests with all necessary measures.”
Fears of a trade war on Wall Street caused the Dow Jones to plunge by 700 points on Thursday. The move by the Trump administration is widely opposed by U.S. business and consumer groups.

Tim Triplett
Read more from Tim TriplettLatest in Trade Cases

Tariff fallout: Canada strikes back, Stellantis idles, GM boosts production
Canada imposes auto tariffs, while automaker Stellantis temporarily idles some plants.

Commerce tags UAE with ‘critical circumstances’ in CORE trade case, South Africa spared
The Commerce Department has made a preliminary determination that ‘critical circumstances’ exist for certain imports of corrosion-resistant (CORE) flat-rolled steel from the United Arab Emirates (UAE). Commerce decided that critical circumstances did not apply to CORE from South Africa. The department also found that critical circumstances did not apply to CORE from UAE producers Al-Ghurair Iron & Steel LLC and United Iron & Steel Company LLC.

Trump’s ‘Liberation Day’ brings 10% baseline tariffs; steel, aluminum, and autos/parts excluded
President Trump’s promised “Liberation Day” has arrived, with a 10% minimum tariff on imports. But there are some very important exceptions: The United States’ USMCA partners, Canada and Mexico, are excluded from the reciprocal tariffs for now. In addition, steel, aluminum, as well as autos and auto parts are excluded from the reciprocal tariffs. That’s […]

Price on Trade: Auto tariffs, auto parts, and Hyundai – a world of rapid changes
Trump's new auto tariffs will apply to passenger vehicles (including sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans), light trucks, and certain automobile parts (including engines and engine parts, transmissions and powertrain parts, and electrical components).

CRU: Canacero urges Mexico-US partnership to fend off Asian steel imports
Victor Cairo, head of Mexico’s steel sector body Canacero and CEO of ArcelorMittal Mexico, says he is confident negotiations between the Mexican and US governments planned for April 2 will lead to the creation of a regional block to substitute imports, especially from Asia.