Sen. Bill Cassidy, R-La., who traveled to China with the Senate majority leader and other senators in mid-October, said what he saw there reinforced his desire to pass what he calls a "foreign pollution fee," a tariff on imports that are more carbon intensive than domestic production. He told International Trade Today that he'll introduce the bill "we think later this month, or maybe early next month."
Section 301 Tariffs
Section 301 Tariffs are levied under the Trade Act of 1974 which grants the Office of the United States Trade Representative (USTR) authority to investigate and take action to protect U.S. rights from trade agreements and respond to foreign trade practices. Section 301 of the Trade Act of 1974 provides statutory means allowing the United States to impose sanctions on foreign countries violating U.S. trade agreements or engaging in acts that are “unjustifiable” or “unreasonable” and burdensome to U.S. commerce. Prior to 1995, the U.S. frequently used Section 301 to eliminate trade barriers and pressure other countries to open markets to U.S. goods.
The founding of the World Trade Organization in 1995 created an enforceable dispute settlement mechanism, reducing U.S. use of Section 301. The Trump Administration began using Section 301 in 2018 to unilaterally enforce tariffs on countries and industries it deemed unfair to U.S. industries. The Trump Administration adopted the policy shift to close what it deemed a persistent "trade gap" between the U.S. and foreign governments that it said disadvantaged U.S. firms. Additionally, it pointed to alleged weaknesses in the WTO trade dispute settlement process to justify many of its tariff actions—particularly against China. The administration also cited failures in previous trade agreements to enhance foreign market access for U.S. firms and workers.
The Trump Administration launched a Section 301 investigation into Chinese trade policies in August 2017. Following the investigation, President Trump ordered the USTR to take five tariff actions between 2018 and 2019. Almost three quarters of U.S. imports from China were subject to Section 301 tariffs, which ranged from 15% to 25%. The U.S. and China engaged in negotiations resulting in the “U.S.-China Phase One Trade Agreement”, signed in January 2020.
The Biden Administration took steps in 2021 to eliminate foreign policies subject to Section 301 investigations. The administration has extended and reinstated many of the tariffs enacted during the Trump administration but is conducting a review of all Section 301 actions against China.
Higher tariffs on some Chinese goods if Congress strips China of its permanent normal trade relations status would not be offset by moving production to other countries, and would instead increase prices for U.S. consumers, hurting low-income households most, according to a study released last week by the National Retail Federation.
The following lawsuits were filed at the Court of International Trade during the week of Oct. 9-15:
The Uyghur Forced Labor Prevention Act is one of the most powerful laws, "in what it's been able to achieve in such a short time," said Howard Mendelsohn, chief client officer for Kharon, a risk intelligence service provider. It was implemented so quickly that almost $2 billion worth of imports has been detained, at least temporarily.
Trade lawyers and importers are wondering how the anti-stockpiling element of a two-year pause on trade remedy circumvention deposits will be enforced.
With the deadline to reach a deal on trade in steel and aluminum with the EU three weeks away, U.S. Trade Representative Katherine Tai is talking less about the commitment to reach a deal by the end of the month, and more about "progress."
The sole member of the Ways and Means Committee who sits on the House Select Committee on China, along with the committee's chairman, are asking the Department of Homeland Security to brief them on how it's investigating allegations of trade fraud, and to allay their concerns that customs fraud is not being enforced.
The following lawsuits were filed at the Court of International Trade during the week of Sept. 18-24:
U.S. Trade Representative Katherine Tai, speaking by video link at an Atlantic Council/Atlantik-Brücke program in Berlin Sept. 22, said she remains "very hopeful that we will have something to show the rest of the world in the next six-week period" as EU and U.S. negotiators continue to try to harmonize both trade defenses and approaches to privileging trade in green steel and aluminum.
House Ways and Means Trade Subcommittee Chairman Adrian Smith, R-Neb., underscored the need to lower tariffs through the Generalized System of Preferences benefits program for American businesses during high inflation at a hearing on reforming GSP, and asked his colleagues to "move forward with open minds and the urge to get things done."