Immediately before the G-20 Summit Meeting on November 30, 2018 in Buenos Aires, President Trump, Canadian Prime Minister Trudeau, and Mexican President Nieto ceremonially signed the new United States-Mexico-Canada Agreement (USMCA). Although each leader signed the Agreement, this does not mean that it will go into effect, as the Agreement must now be approved by the legislature of each country. In regard to the U.S. legislative process, the next steps will be a 60 day period to submit a list of changes to U.S. law that are required for the Agreement to take effect. At the same time, the Agreement must also be reviewed by the U.S. International Trade Commission to assess the impact the agreement will have on GDP, exports and imports, employment, and U.S. consumer interests. The Commission has 105 days after the signing, or until March 15, 2019, to deliver its report to Congress.

Despite moving forward with the signature of the trade agreement, the U.S. continues to have steel and aluminum tariffs on imports from Canada and Mexico pursuant to Section 232 of the Trade Expansion Act of 1962. Prime Minister Trudeau optimistically indicated that Canada and the U.S. will work towards removing these tariffs in the near future.

We will continue to monitor this situation. For more information, please contact Robert Stang,  Jeffrey NeeleyBeau Jackson, or Nithya Nagarajan.

On October 11, 2018, the Department of Commerce (Commerce) announced that it is initiating antidumping duty investigations on Refillable Stainless Steel Kegs from Germany, Mexico, and the People’s Republic of China and concurrently initiating a countervailing duty investigation on imports from China. Continue Reading Initiation of Antidumping and Countervailing Duty Investigations: Refillable Stainless Steel Kegs from Germany, Mexico, and China

Late on September 30, 2018, the United States and Canada reached a new trade agreement (the USMCA) that addresses many of the contentious issues that delayed Canada from rejoining the countries’ trilateral trade agreement (NAFTA).

In a joint statement, Canadian Foreign Affairs Minister Chrystia Freeland and U.S. Trade Representative Robert Lighthizer said that the new agreement “will give our workers, farmers, ranchers, and business a high-standard trade agreement that will result in freer markets, fairer trade and robust economic growth in our region. It will strengthen the middle class, and create good, well-paying jobs and new opportunities for the nearly half billion people who call North America home.” Continue Reading United States-Mexico-Canada Agreement (“USMCA”), the NAFTA Replacement

North America MapAfter President Trump announced steel and aluminum tariffs on several of the country’s allies in March 2018, a number of EU countries, Mexico, and Canada immediately announced retaliatory tariffs against American products. Other trade partners and allies have also made plans to seek remedies through the North American Free Trade Agreement (NAFTA) and the World Trade Organization (WTO). With the impending widespread business impact of these retaliatory actions, companies should look closely at their supply chain to determine risk management considerations.

To elaborate on these recent changes, Husch Blackwell is pleased to team up with The Knowledge Group to offer complimentary passes to the first 30 registrants for a timely upcoming webinar: “Retaliatory Actions Against Trump’s Tariffs: What Businesses Should Do When Allies Hit Back.”

The webinar will provide insights on Trump’s tariffs, industry reactions, risk mitigation strategies and an outlook on what lies ahead. The program will take place on Tuesday, September 11, 2018 from 1:00 p.m.- 2:00 p.m. (ET) The webinar is led by Husch Blackwell Partner, Nithya Nagarajan and John Peterson, Partner at Neville Peterson LLP.

Register here.

As a result of the Steel and Aluminum tariffs announced by President Trump in March 2018, and amended with proclamations issued on May 1, 2018, and June 1, 2018, several trading partners have decided that reciprocal and retaliatory tariffs on U.S. products are appropriate.  To date, the following countries have decided to retaliate – Canada, China, the European Union, India, and Mexico. See the comprehensive list of retaliatory tariffs here.

Continue Reading Comprehensive List of Retaliatory Tariffs

Stainless steel factoryOn April 30, 2018, the President issued two new Proclamations regarding the 232 tariffs imposed on imports of steel and aluminum articles into the United States.  The new Proclamations modify the previous steel and aluminum Proclamations with respect to imports from Canada, Mexico, the European Union, Argentina, Australia, Brazil and South Korea.

Continue Reading President Continues 232 Exemptions for Certain Countries, Announces Quota on Imports of Steel from South Korea

Stainless steel factoryCountry Exemptions

On March 22, 2018, the President issued new Proclamations temporarily exempting imports from certain countries from the steel and aluminum tariffs that were announced in Proclamations 9704 and 9705 of March 8, 2018. The President had previously exempted imports from Canada and Mexico and the new Proclamations add exemptions for imports from Argentina, Australia, Brazil, European Union member countries, and South Korea. However, the Proclamations make clear that the exemptions, including the exemptions for Canada and Mexico, are temporary and that tariffs will go into effect on imports from an exempted country on May 1, 2018 unless the country has reached an agreement with the United States on an alternative means to remove the threat to national security posed by imports of steel articles from the country. If any agreements are reached and any countries are exempted on a long term basis, the President will consider adjustments to the tariff level imposed on non-exempt countries.

In the meantime, the President may consider quotas on imports from exempt countries. If a quota is imposed, the quota amount imposed will take into account all imports of steel and aluminum since January 1, 2018.

While the country exemptions may extend beyond May 1, depending on the progress on trade negotiations, there is no guarantee of such extensions.

Continue Reading President Exempts Countries from Steel and Aluminum Tariffs, Makes Product Exclusions Retroactive

Stainless steel factoryThe recent announcement by the White House that it intends to unilaterally impose 25 percent tariffs on steel imports and 10 percent tariffs on aluminum imports from all countries except Canada and Mexico has created significant uncertainty among foreign exporters.

It is of great import that Canada and Mexico are excluded from the imposition of section 232 duties for the time being. The European Union, Australia and South Korea have expressed a desire for similar exclusions to be applied to them. In fact, the EU and Australia are almost assured of an exemption based upon press reports. But where does that leave other important allies such as Turkey, India, Brazil and a host of other steel-exporting nations?

Continue Reading Can U.S. Allies Sidestep New Steel and Aluminum Tariffs?

White HouseThe recent announcement that the White House will impose tariffs of 25 percent on steel imports and 10 percent on aluminum imports from all countries except Canada and Mexico has created significant uncertainty and concern for foreign exporters and U.S. importers. Our attorneys answer some of your FAQs. (Read our previous alert about President Trump’s tariff proclamation.)