TVs imported from China could bear an especially heavy burden under the Office of the U.S. Trade Representative’s list of products targeted for 25 percent tariffs under the Trump administration's Section 301 investigation (see 1804040019). “This is a big impact on TV,” Bob O’Brien, president of Display Supply Chain Consultants, said in an interview. All products classified in Harmonized Tariff Schedule subheading 8528.72.64 would be prone to tariffs, “which is basically all TVs” imported from China, he said. He estimates 18.8 million TVs with a value of $3.9 billion were imported from China in 2017 under that classification. “This would have a huge impact on the TV supply chain.”
US Trade Representative (USTR)
A U.S. Cabinet level position which serves as the President's primary representative, negotiator, and spokesperson regarding U.S. trade policy. The USTR heads the Office of the United States Trade Representative which develops and coordinates U.S. policy for international trade, commodities, and direct investments, as well as overseeing trade negotiations with other countries.
Trump Considering Tariffs on Another $100 Billion Worth of Chinese Goods Under Section 301 Authority
President Donald Trump tasked the Office of the U.S. Trade Representative with looking at adding another $100 billion in Chinese goods to the $50 billion already identified as part of the Section 301 investigation. "Rather than remedy its misconduct, China has chosen to harm our farmers and manufacturers," the White House said in a release. USTR promptly responded that tripling the size of the tariffs is appropriate, and promised to assemble a list. "Any additional tariffs proposed will be subject to a similar public comment process as the proposed tariffs" announced on April 3 and "no tariffs will go into effect until the respective process is completed," the agency said.
U.S. Trade Representative Robert Lighthizer has said he hopes to reshape NAFTA in a way that appeals to both Democrats and Republicans. Some of the most prominent critics in the House of Representatives on NAFTA said April 5 that while they appreciate some of his positions, he has a long way to go to convince them.
Hours after the U.S. put out its draft list of tariffs on $50 billion worth of Chinese goods (see 1804030055), China said it may impose tariffs on $50 billion worth of U.S. imports, including certain narrow-body and corporate jets, cars, SUVs, soybeans, beef, wheat, whiskey and chemicals. Trade lawyers and lobbyists and China economic experts didn't agree on much, but most expect that a negotiated settlement will not be reached in time to stop the tariffs.
An agreement in principle on NAFTA is reachable in the "next little bit," U.S. Trade Representative Robert Lighthizer said in a March 28 interview on CNBC. According to media reports from Inside U.S. Trade and from Canada, Lighthizer's team has abandoned a U.S. content requirement for rules of origin in autos, and replaced it with a proposal that an 85 percent North American content requirement can be fulfilled in part by giving credit for higher wages. Some reports pegged that wage at $15 an hour, others at somewhere in the $13 to $17 an hour range. Either would be easily met by most U.S. and Canadian auto parts and auto assembly plants.
U.S. Trade Representative Robert Lighthizer filed a request for consultations at the World Trade Organization to “address China’s discriminatory technology licensing requirements,” his office said in a March 23 news release. President Donald Trump’s memorandum proposing Section 301 tariffs on about $60 billion worth of Chinese goods imported to the U.S. directed Lighthizer to address “China’s discriminatory technology licensing practices” through a WTO dispute proceeding (see 1803220034), of which the consultations request was the first step, Lighthizer's office said.
The U.S. will request World Trade Organization consultations with India to resolve a trade dispute, as it contends that five Indian government programs provide $7 billion in illegal subsidies for exports. U.S. Trade Representative Robert Lighthizer made the announcement March 14, with a statement that said, in part, that “USTR will continue to hold our trading partners accountable by vigorously enforcing U.S. rights under our trade agreements and by promoting fair and reciprocal trade through all available tools, including the WTO.”
The U.S. under previous administrations passively stuck with "outdated and underperforming trade deals and allowed international bureaucracies to undermine U.S. interests," the Office of the U.S. Trade Representative said. But now, "countries that refuse to give us reciprocal treatment or who engage in other unfair trading practices will find that we know how to defend our interests," USTR said. In a 359-page report to Congress on the trade agreements program released late on Feb. 28, USTR laid out its priorities for the coming year, and defended the ongoing NAFTA negotiations. By law, Congress must renew fast-track trade authority by June 1, or NAFTA 2.0 will not be able to proceed.
House Ways and Means leaders said a visit from the U.S. trade representative Feb. 7 was a productive meeting about modernizing NAFTA. "I want to make sure we hold our trading partners accountable through strong, enforceable commitments with effective dispute settlement, including ISDS, because it creates U.S. jobs. People in my district and across the country are counting on us to get this right, which is why we all have to stay at the table. Congress has the Constitutional responsibility over trade and we’re committed to fulfilling our duty in close coordination with the Administration," Chairman Kevin Brady, R-Texas, said in a statement after the private meeting.
The U.S. and South Korea will meet Jan. 31 - Feb. 1 in Seoul to further discussions over possible changes to the U.S.-South Korea Free Trade Agreement, the Office of the U.S. Trade Representative said. The U.S. “will engage on priority areas with the goal of moving towards fair and reciprocal trade and resolving additional cross-cutting and sector-specific barriers impacting U.S. exports,” USTR said. Officials from the two countries last met formally on Jan. 5 in Washington (see 1801080027).