The following lawsuits were filed at the Court of International Trade during the week of Dec. 25-31:
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.
International Trade Today is providing readers with the top 20 stories published in 2023. All articles can be found by searching on the titles or by clicking on the hyperlinked reference numbers.
CBP issued the following releases on commercial trade and related matters:
The following lawsuits were filed at the Court of International Trade during the weeks of Dec. 4-10, 11-17 and 18-24.
More than 400 products that are excluded from Section 301 tariffs will continue to enter under normal duties through May 31, the Office of the U.S. Trade Representative announced Dec. 26. The exclusions had been scheduled to end at the end of this year.
International Trade Today is providing readers with the top stories from last week in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
A senator who is pushing against reductions in the scope of the Section 301 tariff action against China (see 2311210048) said that while he "had some good conversations with the administration about it," he doesn't know when the administration will announce the results of its review.
The following lawsuits were filed at the Court of International Trade during the week of Nov. 27 - Dec. 3:
German company KingKong-Tools GmbH & Co KG, along with its American subsidiary King Kong Tools, will pay $1.9 million to resolve allegations of customs fraud, the U.S. Attorney's Office for the Northern District of Georgia announced. The office alleged that King Kong falsely said its tool imports were made in Germany when they were made in China, misrepresenting their country of origin in violation of the False Claims Act.
Rep. Earl Blumenauer of Oregon, the top Democrat on the House Ways and Means Trade Subcommittee, acknowledged in a hallway interview at the Capitol that he has been briefed that the Biden administration will lift Section 301 tariffs from some products as part of its review of the action against Chinese trade abuses.