Geopolitical and macroeconomic factors slammed ON Semiconductor’s Q2 revenue, said Chief Financial Officer Bernard Gutmann on a Monday earnings call. A “sharper-than-expected” broad-based inventory correction, largely in the automotive market, drove revenue lower in the quarter, he said.

International Trade Today is providing readers with some of the top stories for July 29 - Aug. 2 in case they were missed.

CBP correctly applied two Section 301 tariff rates to imported toolsets from China, CBP said in a July 30 ruling. Stanley Black & Decker, through its lawyer at Follick & Bessich, requested reconsideration of an April ruling that found that a tool set imported by the Apex Tool Group could be subject to multiple tariffs (see 1904240014). The same issue seems to be under review at the Office of the U.S. Trade Representative after a lawmaker mentioned potential broader impact if the fourth tranche of tariffs takes effect and asked whether the USTR considered CBP's interpretation to be correct (see 1907310052).

The Information Technology Industry Council didn’t comment Monday when asked whether June’s huge spike in imports of Chinese laptops from May could have been indicative of U.S. importers rushing to beat the List 4 Section 301 tariffs after the Office of the U.S. Trade Representative announced the threat mid-May (see 1905140025).

A survey by shopping rewards app Shopkick found 60 percent of U.S. consumers will adjust where they shop if impending tariffs announced by the Trump administration take effect. The survey of 30,799 users, released Friday, was done June 28-June 30, before President Donald Trump’s Thursday tweet putting the 10 percent List 4 Sec­tion 301 tariffs into effect Sept. 1 on Chinese imports not previously tariffed. Of the 60 percent of consumers aware of the impending tariffs, some 40 percent reported having already seen prices increasing on store shelves, and 38 percent expect a household cost increase of up to $500; 30 percent expect a hike of more than $1,000. Roughly 60 percent said they plan to adjust the retailers they frequent; 44 percent plan to cut down on shopping; 29 percent are stocking up on goods now and 25 percent will switch to American-made goods, said the survey. Thirty-four percent of generation Z respondents were aware of tariffs vs. 74 percent of baby boomers. Half of millennials plan to reduce spending vs. 38 percent of baby boomers, 62 percent of whom plan to seek alternate options to cut costs, it said. Though the arrival and scope of tariffs are uncertain, consumers are “thinking ahead and plan to adjust their shopping habits and destinations, ushering in a new age of consumer shopping habits that American retailers will be forced to adapt to,” it said.

OLED materials and technology supplier Universal Display estimates it “pulled in” $15 million to $20 million in "prepurchase" orders in Q2 from Chinese panel makers that would have been placed in 2019's second half if U.S. importers had not tried to beat the possible implementation of List 4 Section 301 tariffs on a wide array of consumer tech products, said CEO Steven Abramson on an earnings call Thursday. The “pre-buying” happened throughout the quarter, said Chief Financial Officer Sidney Rosenblatt. It was “not just one customer” but “across the board for our Chinese customers,” he said. Universal spoke to its panel customers, “and we understand what they were doing,” he said. “We think that prepurchases this time are a little different than we’ve had in the past,” when any pre-buying activity was “contract-related,” he said. The Trump administration announced the proposed List 4 tariffs on smartphones, TVs, monitors and other consumer tech products in the middle of the quarter (see 1905140025). and President Donald Trump tweeted Thursday that he will put 10 percent List 4 tariffs into effect Sept. 1 (see 1908010059). Industry awaits Federal Register publication of a notice from the Office of the U.S. Trade Representative delineating which products on List 4 will have tariff exposure and which will be spared the higher duties.

A survey by shopping rewards app Shopkick found 60 percent of U.S. consumers will adjust where they shop if impending tariffs announced by the Trump administration take effect. The survey of 30,799 users, released Friday, was done June 28-June 30, before President Donald Trump’s Thursday tweet putting the 10 percent List 4 Sec­tion 301 tariffs into effect Sept. 1 on Chinese imports not previously tariffed. Of the 60 percent of consumers aware of the impending tariffs, some 40 percent reported having already seen prices increasing on store shelves, and 38 percent expect a household cost increase of up to $500; 30 percent expect a hike of more than $1,000. Roughly 60 percent said they plan to adjust the retailers they frequent; 44 percent plan to cut down on shopping; 29 percent are stocking up on goods now and 25 percent will switch to American-made goods, said the survey. Thirty-four percent of generation Z respondents were aware of tariffs vs. 74 percent of baby boomers. Half of millennials plan to reduce spending vs. 38 percent of baby boomers, 62 percent of whom plan to seek alternate options to cut costs, it said. Though the arrival and scope of tariffs are uncertain, consumers are “thinking ahead and plan to adjust their shopping habits and destinations, ushering in a new age of consumer shopping habits that American retailers will be forced to adapt to,” it said.

China vowed Friday to retaliate if the Trump administration carries out its threat to impose the 10 percent List 4 Section 301 tariffs on $300 billion in Chinese imports not previously dutied (see 1908010059). If the U.S. “imposes tariff measures and implements them” as threatened Sept. 1, “China will have to take necessary countermeasures to resolutely defend the core interests of the country and the fundamental interests of the people,” said a Commerce Ministry spokesperson. “All the consequences will be borne by the US.”

The Customs Rulings Online Search System (CROSS) was updated Aug. 5. The most recent ruling is dated Aug. 2. The following headquarters rulings not involving carriers were "modified" on Aug. 5, according to CBP:

The Office of the U.S. Trade Representative is publishing its first list of product exclusions from the third tranche of $200 billion in Section 301 tariffs on China (see 1908050002). This list of exclusions includes 10 subsets of tariff numbers in chapters 39, 54, 56, 73, 87 and 89. The new exclusions take effect retroactively from Sept. 24, 2018, when the $200 billion in tariffs originally entered into force, and will remain for one year following publication of USTR’s notice. USTR is creating Harmonized Tariff Schedule subheading 9903.88.13 for the new set of exclusions.