Latest U.S. Trade Actions/Tariffs and Other Countries Retaliatory Measures – August 30, 2018
Last updated on 8/14/2018: added new Section 232 tariff of 50% on steel from Turkey.
Update on 8/8/2018: added China’s retaliatory tariffs on $16 billion – List of affected HTS Subheadings includes additional 219 tariff items, plus tariff rate of 25%.
Update on 8/7/2017: added USTR’s final list of covered products for Section 301 List 2 tariffs with 25% tariff rate.
Background
On March 8, 2018, President Trump issued two Presidential Proclamations announcing the imposition of special Section 232 duties on certain steel and aluminum products. Shortly thereafter, on March 19, 2018, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) issued an interim rule in the Federal Register establishing a new process by which organizations may submit requests to exclude their products from Section 232 tariffs on steel and aluminum.
Three days later, on March 22, 2018, President Trump announced his decision to take action against what he terms as China’s unfair trade practices. These are outlined in the U.S. Trade Representative’s (USTR) Section 301 investigation report of China’s acts, policies and practices related to technology transfer, intellectual property and innovation. As part of the U.S. response, the USTR proposed an additional tariff of 25 percent on a list of products imported from China. The list of products, which is defined by 8-digit HTS subheadings, is set out in this Federal Register notice. The new Section 301 tariffs could potentially affect over 1,300 HTS lines.
Both Section 232 and 301 tariffs are in addition to other general or special duties that may apply. It is important to remember that special duties – such as antidumping and countervailing (ADD/CVD) – continue to be a high priority issue in the international trade arena. Regardless of the impact made by the above tariffs, U.S. Customs and Border Protection continues to actively monitor and audit high-risk antidumping and countervailing activity.
U.S. Trade Actions as of 8/14/2018
| Action | Covered Products | Rate Increase | Effective Date |
| Section 232 | Steel and Aluminum | Steel – 25% Aluminum – 10% | 6/1/2018 |
| Status: | Steel – all countries of origin except South Korea, Brazil, and Argentina (agreed to quotas); and Australia (exempted).Aluminum – all countries of origin except Argentina (agreed to quota); and Australia (exempted). Beginning August 13, steel articles covered by Section 232 from Turkey are subject to an ad valorem duty rate of 50%. | ||
| Section 232 | Autos and Automotive Parts | TBD | TBD |
| Status: | |||
| Section 301 | List 1 | 25% 25% 25% | 7/6/2018 8/23/2018 TBD |
| Status: | List 1 totaling $34 billion worth of imports is composed of 818 tariff lines, and went into effect on 7/6/2018.List 2 totaling $16 billion worth of imports is composed of 284 proposed tariff lines identified by the interagency Section 301 Committee. 279 of the 284 lines go into effect on 8/23/2018. List 3 includes a list of tariff lines of products from China with an annual trade value totaling approximately $200 billion. These are also subject to a public review process | ||
Retaliatory Actions
| Canada | List | Table 1 – 25% Table 2 – 10% Table 3 – 10% | 7/1/2018 |
| Status: | The Canadian government received over 1,000 submissions of public feedback during public consultations on its original list.Canada is imposing countermeasures against C$16.6 billion in imports of steel, aluminum, and other products from the U.S., representing the value of 2017 Canadian exports affected by the U.S. tariffs. | ||
| EU | List | Annex I – 10% or 25% Annex II – 10% – 50% | Annex I – 6/22/2018 Annex II – 3/23/2018 or 5th day after WTO Dispute Settlement Body rules against the U.S. action, whichever is first. |
| Mexico | List | 7% – 25% (pages 1-4) 10% – 15% (page 5) | 6/5/20187/5/2018 |
| Status: | Most retaliatory measures effective as of 6/5/2018. An “exception” list is effective on 7/5/2018. | ||
| China (Response to Section 232 Tariffs) | List | Annex I – 15% – 25% | 4/3/2018 |
| China (Response to Section 301 Tariffs) | List 1List 2 List 3 | 25%25% TBD | 7/6/2018 8/23/2018 TBD |
| Status: | List 1 is composed of 545 tariff lines, and goes into effect on 7/6/2018.List 2 contains 333 tariff lines on U.S. goods worth $16 billion. Start date is 8/23/2018. List 3 contains 5,207 tariff lines on U.S. worth $60 billion. Start date is unknown. | ||
| India | Up to $10.6 billion; Annex I – 5% – 100% | 6/21/2018 | |
| Status: | The U.S. declined India’s request for WTO consultations. Thus leading to India’s retaliation tariffs on U.S. goods, effective immediately. | ||
| Japan | Up to $1.91 billion | TBD – no earlier than March 23, 2021, or the 5th day following the date of a decision from the WTO DSB, whichever comes first. | |
| Status: | No update since May 18, 2018. Ambassador Lighthizer is holding trade talks with Economy Minister Motegi in July. Under Secretary McKinney is also leading a trade mission to Japan to discuss a possible bilateral trade deal. | ||
| Russia | Up to $3.16 billion | TBD | |
| Status: | Russia will apply the proposed suspension of equivalent concessions upon the expiration of 30 days from the day on which Council on Trade in Goods has been notified. The suspension will continue until the U.S. lifts the safeguard measures. | ||
| Turkey | Up to $1.78 billion; Annex I – 5% – 40% | 6/21/2018 | |
| Status: | The U.S. declined Turkey’s request for WTO consultations due to the provisions of the Safeguard Agreement. The Government of Turkey proposed the suspension of equivalent concessions starting June 21, 2018. | ||
Please feel free to contact us if you have any 232/301 tariffs questions or if you have any other Import/Export Trade Compliance related questions.
Ph. (619) 661 5525