Husch Blackwell announces its November Trade Law Newsletter on key issues and announcements related to International Trade and Supply Chain.
On Saturday, December 1, 2018, President Trump and Chinese President Xi Jinping met to discuss trade relations between the two countries. Following their meeting, President Trump indicated that he would postpone increasing the tariff rate to 25% on certain Chinese goods worth up to $200 billion currently covered under Section 301 List 3. This increase was originally slated for January 1, 2019 (see our previous post here). The 10% duties on that $200 million in goods will remain in effect, however, as will the 25% tariffs on the goods worth about $50 billion, which appear on the first and second list of additional duties. According to the White House press statement, the parties agreed to “endeavor” on a 90-day period, until March 1, 2019, to discuss the restructuring of China’s trade policies and come to an agreement. Continue Reading President Trump Holds Off on Increase of Section 301 Tariffs
On September 17, 2018, USTR finalized a list of 5,745 imported products from China (referred to as “List 3”) for which additional tariffs are to be collected starting September 24, 2018 at a rate of 10 percent, rising to 25 percent starting January 1, 2019. The value of List 3 goods is estimated at approximately $200 billion. The Federal Register notice for this announcement was published on Friday, September 21, 2018 and differs somewhat from the Section 301 tariff announcements previously published for List 1 and List 2. Continue Reading Will there be an Exclusion Process for Section 301 List 3 Products?
On September 20, 2018, President Trump released a 16-page Executive Order which delegated various Presidential powers established under the Countering America’s Adversaries Through Sanctions Act (“CAATSA”) to both the U.S. Secretary of Treasury and the U.S. Secretary of State. As a result of this delegation, the U.S. Treasury Department‘s Office of Foreign Assets Control (“OFAC”) and the U.S. State Department are now empowered to take actions which include (but are not limited to) designating parties to be sanctioned under various CAATSA provisions, selecting the specific menu-based sanctions to be imposed upon those parties and implementing those menu-based sanctions (we previously covered the CAATSA statute here, here and here). OFAC also updated its website to provide an additional FAQ response explaining the new Executive Order and indicating that it anticipates promulgating regulations to implement these sanctions. Continue Reading Trump Administration Issues New CAATSA Executive Order, Adds 33 Persons to LSP List and Sanctions Chinese Defense Buyer
On Monday, September 17, 2018, the Office of the United States Trade Representative (USTR) finalized and released the list of imported products from China (approximately $200 billion) for which additional tariffs are to be collected. According to President Trump, the initial tariffs will take effect on September 24, 2018 at a rate of 10 percent. At the direction of the President, he has instructed the USTR to, “increase the level of trade covered by the additional duties in order to obtain elimination of China’s unfair policies.” Subsequently starting on January 1, 2019 this will increase to 25 percent. Continue Reading New Section 301 Tariffs Released with Few Exemptions Granted
On August 29, 2018, President Trump issued proclamations announcing that companies will be able to request exclusions from the Section 232 quantitative limitations (i.e., quotas) for certain steel and aluminum products imported in to the United States. In particular, this affects steel and aluminum imports from Argentina, Brazil, and South Korea. Continue Reading Opportunity for Quota Exclusion Requests for Steel and Aluminum Products from Argentina, Brazil and South Korea subject to Section 232 Sanctions
After 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.
On August 7, 2018, the Office of the United States Trade Representative announced the second list of products that will be subject to an additional 25 percent tariff when imported from China. After a public hearing and comment period, USTR ultimately only removed 5 tariff lines from the list proposed in its notice of June 20, 2018.
The final list can be found here. The additional tariff will go into effect on August 23. USTR will publish a Federal Register notice shortly which will include a process by which parties can request exclusions for particular products. This product exclusion process is expected to be similar to the process announced after the first round of tariff increases. See our blog post here.
President Trump signed a new Executive Order on August 6, 2018, titled “Reimposing Certain Sanctions with Respect to Iran”. The Executive Order was timed to coincide with the last day of the 90-day wind-down period established for activities associated with certain sanctions relief authorized by the Joint Comprehensive Plan of Action (“JCPOA”). As a result, the first round of sanctions against Iran will become effective at 12:01 a.m. on August 7, 2018. Continue Reading United States Announces Re-imposition of First Round of Nuclear Sanctions on Iran