President Donald Trump is in favor of moving forward with proposed Section 301 tariffs on a broad group of products from China, according to a report from Bloomberg. The proposed tariffs on $200 billion worth of Chinese imports (see 1808010070) could come soon after the comment period on the proposal ends on Sept. 6, the report said. Asked to confirm the report during an interview, Trump called it "not totally wrong."

Though the Trump administration “so far” hasn’t targeted “fashion watches” for Trade Act Section 301 tariffs on Chinese imports, “that could be a potential for the future,” said Movado Group CEO Efraim Grinberg on a Wednesday earnings call. “We are looking at different ways to hope to be able to mitigate that, if that were to occur,” he said. “In the short-to-medium-term, if they were to occur, that would be a threat to the overall margins.” Movado expects to close its $100 million MVMT Watches buy around Oct. 1, said Grinberg. MVMT, only four years old, has built “a truly special business that is targeted in millennials,” based on “a community of social media followers,” he said. “While others believe that young consumers would not be interested in the watch category,” MVMT “proved them wrong,” he said. “In MVMT, we are acquiring a company with over 4.5 million followers on Facebook and Instagram, a brand that offers beautiful quality products at prices that are accessible to young consumers and a digital brand experience that resonates with millennials.”

Though the Trump administration “so far” hasn’t targeted “fashion watches” for Section 301 tariffs on Chinese imports, “that could be a potential for the future,” Movado Group CEO Efraim Grinberg said on an Aug. 29 earnings call. “We are looking at different ways to hope to be able to mitigate that, if that were to occur,” he said. “In the short-to-medium term, if they were to occur, that would be a threat to the overall margins.”

Seafood importers should make certain that Chapter 98 exemptions for goods returned to the U.S. after being advanced in value are applicable when filing such claims to reduce exposure to Section 301 duties, a lawyer at a seafood company said during a recent interview with Seafood Source. Ian Moores, general counsel at seafood company F.W. Bryce in Massachusetts, said that the duty exceptions in Harmonized Tariff Schedule subheading 9802.00.50 for goods returned after repair or alteration only apply to U.S. raw fish material processed in China. Additionally, CBP has ruled that headed and gutted raw material that is cut, frozen and packaged goes beyond "alteration," Moore said. The Office of the U.S. Trade Representative recently said the Section 301 tariffs will only be applied to the operation performed in China, not the full value of the good, for imports under the Chapter 98 provisions (see 1808160049). Seafood is not currently subject to Section 301 tariffs, but is on the list of $200 billion of goods proposed for the third round of duties (see 1807100070).

Marketers of low-end consumer electronics products will be especially vulnerable if the Trump administration imposes a third tranche of 25 percent Trade Act Section 301 tariffs on Chinese imports, said two such companies in comments posted Monday in docket USTR-2018-0026. Both said their businesses are too profit-poor to absorb higher customs duties, and they worry about the pass-along impact of higher pricing.

The Agriculture Department on Aug. 27 announced a series of programs designed to compensate farmers for losses caused by foreign retaliation for new U.S. tariffs. Under a new Market Facilitation Program, some $4.7 billion will be distributed to farmers of certain commodities below an income threshold, with about $3.63 billion of that amount set aside for soybean farmers. Soybeans are one of the products most affected by Chinese tariffs put in place July 6 in response to U.S. Section 301 duties (see 1806200035 and 1804060019).

Marketers of low-end consumer electronics (CE) products will be especially vulnerable if the Trump administration imposes a third tranche of 25 percent Section 301 tariffs on Chinese imports, companies said in comments in docket USTR-2018-0026. Both said their businesses are too profit-poor to absorb higher customs duties, and they worry about the pass-along impact of higher pricing.

International Trade Today is providing readers with some of the top stories for Aug. 20-24 in case they were missed.

Element Electronics said it's flummoxed by the Trump administration’s proposal to impose 25 percent Trade Act Section 301 tariffs on the LCD panels Element sources from China to assemble TVs at its Winnsboro, South Carolina, plant. The tariffs endanger the factory’s survival, David Baer, the company’s general counsel, told an Office of the U.S. Trade Representative public hearing Aug. 21 on the proposed levies, according to a transcript released Friday. Baer “can't find any way to interpret what the administration is proposing other than it's a mistake or unintended result and will promptly be fixed through this hearing process,” he said.

China began a World Trade Organization challenge of 25 percent Section 301 tariffs on a second group of $16 billion in Chinese goods that began Aug. 23, the WTO said in a news release. China requested consultations with the U.S. on Aug. 23, saying the measures violate WTO rules by imposing higher tariffs on China than on other countries, exceeding U.S.-agreed bound rates and retaliating against China without first filing a WTO dispute. Under WTO rules, China may request the formation of a panel to adjudicate the case if consultations don’t resolve the dispute after 60 days. China has already filed a challenge of the first group of $34 billion in goods subject to Section 301 tariffs since July 6 (see 1807060012), as well as proposed tariffs on a third group of $200 billion in Chinese goods (see 1807160046).