General Electric’s trade policy director doesn’t buy the conventional wisdom that it’s too hard for U.S. companies to source goods from countries other than China to escape the Trump administration’s Section 301 tariffs on Chinese goods, he said Tuesday. “Supply chains are actually kind of flexible," Drew Quinn told an International Trade Association workshop on Asia. He conceded he agrees with those who argue not many countries of origin can match the skills or scale found in China. Legislation introduced last week in the House (HR-1452) and Senate (S-577) to mandate an exclusion process for the List 3 tariffs that took effect Sept. 24 would grant exemptions to goods “not commercially available” outside China, or not produced outside China ”at a cost-competitive price at commercial scale,” as International Trade Commission data would define that (see 1903010031). GE hasn’t heard back from the Office of the U.S. Trade Representative about any of the 25 exclusion requests it made to exempt power, aviation and healthcare goods from the List 1 tariffs, said Quinn, a former deputy USTR. He worries that only List 3 tariffs would be lifted in a U.S.-China trade deal, he said: "We hope that List 1's 25 percent tariffs does not become the new normal."

The National Retail Federation hailed introduction Thursday of bipartisan legislation in the House and Senate requiring the Trump administration to begin an exclusion-request process for the third tranche of 10 percent Section 301 tariffs on Chinese imports modeled after those in the first two rounds of duties. The legislation, sponsored by Sens. James Lankford, R-Okla., and Chris Coons, D-Del., and Reps. Ron Kind, D-Wis., and Jackie Walorski, R-Ind., would require granting tariff exclusions for imports “that have no commercial availability outside of China,” or those “for which a tariff would cause an increase in consumer prices for low- and middle-income families,” said NRF. Tariffs are “taking a toll on hardworking Americans across the country,” said David French, NRF senior vice president-government relations. “Establishing a timely and efficient tariff exclusion process is the least Washington can do for American businesses that have no alternative supplier and for working families that rely on everyday products.” Walorski, one of the bill’s House sponsors, questioned U.S. Trade Representative Robert Lighthizer at a Ways and Means Committee hearing about whether he expected to meet the 30-day deadline for initiating a List 3 tariff-exclusion process under a mandate written into the Feb. 15 omnibus spending bill.(see 1902270047). “It’s something that we’re looking at,” he said, as if the mandate didn’t exist. Lighthizer said he will maintain the policy of initiating a List 3 exclusion process if the tariffs increases to 25 percent. Under the legislation, the granted exclusions would be retroactive to List 3's Sept. 24 effective date. In specifying the terms under which exclusions would be required, the legislation also would also take away USTR's discretion to grant exemptions under conditions the agency hasn't specified for rounds one and two. The legislation's sponsors cited the Congressional Research Service in saying that U.S. importers paid more than $12.2 billion in tariffs for all three Section 301 lists through Feb. 21.

More than 200 companies and trade associations banded together Tuesday to launch the USMCA Coalition with the goal of promoting congressional ratification of the U.S.-Mexico-Canada free-trade agreement. BSA|The Software Alliance, CompTIA, Engine, the Information Technology Industry Council, MPAA and Telecommunications Industry Association belong, but CTA isn't listed as a member. CTA representatives didn’t comment Tuesday. The U.S. Chamber of Commerce backs the coalition because it “has long supported the benefits of free and open trade,” blogged the group Tuesday.

Senate Minority Leader Chuck Schumer, D-N.Y., warned President Donald Trump and Treasury Secretary Steven Mnuchin to not “give in to China” on ongoing issues involving Chinese telecom equipment maker Huawei amid bilateral trade negotiations. Trump told reporters Friday the two countries were “talking about” whether to address Huawei-related matters, including the U.S.' indictment of company officials and subsidiaries on charges including conspiracy to violate U.S. economic sanctions against Iran (see 1902220066). There was already confusion about the Trump administration's stance on a ban on using equipment from Huawei and China's ZTE in U.S. networks (see 1902210057). “Do not do with Huawei what you did” last year by instigating a settlement that lifted the Commerce Department ban on U.S. companies selling telecom software and equipment to ZTE (see 1807130048), Schumer tweeted Saturday. “Do not betray your instinct to be tough on China just to secure a ‘deal’ that doesn’t bring long term benefit to American workers.”

The U.S. and China are "talking about" whether they will address ongoing issues involving Chinese telecom equipment makers Huawei and ZTE via a new bilateral trade agreement, President Donald Trump told reporters Friday. That comes amid confusion about the Trump administration's stance on a ban on using equipment from the two companies in U.S. networks (see 1902210057). The U.S. last month indicted Huawei officials and subsidiaries on a range of charges, including conspiracy to violate U.S. economic sanctions against Iran (see 1901280052). "We want everybody to compete and I guess it will be somewhat of a subject that we're talking about here," Trump told reporters. "We may or may not include that in this deal."

U.S. Trade Representative Robert Lighthizer will be the only witness giving oral testimony at a hearing Feb. 27 before the House Ways and Means Committee on U.S.-China trade tensions, the committee announced Wednesday. Written comments can be submitted for the hearing record by March 13, the committee said. Ways and Means is one of three committees Lighthizer must report to by mid-March on his progress in creating an exclusion process for the third tranche of Section 301 tariffs on Chinese imports under the newly enacted spending bill that averted a renewed government shutdown (see 1902170001). The hearing is at 10 a.m. in 1100 Longworth.

The National Association of Manufacturers wants to see the Trump administration reach a trade agreement “to hold China accountable” for its allegedly unfair trade practices, said CEO Jay Timmons Wednesday in a speech at Lone Star College in Houston. “China cheats -- plain and simple,” he said. “And it hurts us here in America. And the tariffs, on their products and on ours? Well, they hurt manufacturers, too.” China is the “most challenging market in the world,” but it also packs “big opportunities,” he said. A U.S.-China trade agreement “would not only fix those problems and set new rules -- it would be historic. We want it done, and that’s why we called for it more than a year ago.”

As the U.S. approaches the “final weeks” of negotiations with China on a comprehensive trade deal, “we urge you to insist that the deal make substantial, verifiable, and enforceable progress to address the myriad threats identified” in the Office of the U.S. Trade Representative’s Trade Act Section 301 report on allegedly unfair Chinese trade practices, seven Democratic senators wrote President Donald Trump Wednesday. "Any acceptable agreement must, at a minimum, commit China to cease the predatory practices” uncovered in the 301 investigation, including forced technology transfer and discriminatory licensing terms, said the letter by Sens. Robert Menendez of New Jersey, Sheldon Whitehouse of Rhode Island, Mark Warner of Virginia, Maggie Hassan of New Hampshire, Ben Cardin of Maryland, Michael Bennet of Colorado and Catherine Cortez Masto of Nevada. "The only way to hold the Chinese government to its word is to lay out clear metrics by which we can judge compliance," they said. Ending China’s unfair trade practices is “a critical step” toward “reversing the damage” those policies have had on the U.S. economy. they said.

Regulators and policymakers should find ways to maximize international data flow through legislation and trade deals that recognize the public’s right to data privacy, Apple, IBM and BSA|The Software Alliance representatives said Thursday. It’s not about reducing data privacy enforcement, said Apple Global Trade and International Affairs chief Lisa Pearlman, moderating a Washington International Trade Association panel. Finding balance between restricting and enabling data transfers is “one of the biggest challenges,” she said. IBM Market Access and Trade Director Steve Stewart said the more stringent data localization requirements, the less businesses can operate and compete. He noted two-thirds of IBM’s revenue comes from outside the U.S. It’s critical to get cross border data flow rules correct, said BSA Policy Director Joseph Whitlock. He claimed 98 percent of all international data ever gathered was created in the past two or three years. China is the most significant threat to international data flows, C&M International CEO Robert Holleyman said. In China, domestic companies have a clear advantage over international competitors because of data localization standards, he said. Artificial intelligence will have broad, economywide impacts on trade, said Brookings Institution Global Economy and Development Senior Fellow Joshua Meltzer. Large data sets are necessary to improve AI accuracy, he said.

A Chinese Foreign Ministry spokesperson in Beijing sidestepped questions Thursday about President Donald Trump’s remarks suggesting he might be willing to let the March 1 deadline “slide” for raising the 10 percent Section 301 tariffs to 25 percent on $200 billion worth of Chinese imports if U.S and China negotiators are close to reaching a comprehensive trade agreement (see 1902130040). Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer are in Beijing for the latest round of trade talks that began Thursday. “We all hope that a deal could be reached,” said the spokesperson. “At present, all we could do is ensure that the two delegations could concentrate on having a good round of consultation and work for a mutually accepted and mutually beneficial outcome, which is also to the benefit of the world.”