The Commerce Department posted an updated version of its "China's 301 Retaliation Product Scope" that lists U.S. goods that are included in China's retaliatory tariffs. The updated list includes Chinese tariff increases that took effect Sept. 1.
The Treasury’s Office of Foreign Assets Control announced sanctions on Iran two days after President Donald Trump instructed the Treasury to increase pressure on the country. The sanctions target the Central Bank of Iran, the National Development Fund of Iran and Etemad Tejarate Pars Co. for funding Iran’s military and contributing to terrorism, Treasury said in a Sept. 20 press release.
It may only be a matter of time before countries create a trade payment system to avoid U.S. sanctions, said David Mortlock, a trade lawyer and senior fellow with the Atlantic Council.
A House bill would increase export controls on defense items to Hong Kong police, including “nonlethal crowd control items.” The bill, introduced Sept. 10, would require the Trump administration to restrict export license approvals of certain “covered defense articles and services” to the Hong Kong Disciplined Services. If the bill is passed, the covered items would be determined by the Commerce and State departments and sent in a report to Congress. The bill mentions “water cannon trucks, tear gas, rubber bullets, sponge grenades, beanbag rounds, batons, pepper spray, pepper balls and projectile launchers,” as possible options. “I am deeply concerned that American-made police equipment is being used to violently crack down on peaceful protesters in Hong Kong,” Rep. Jim McGovern, D-Mass., who helped introduce the bill, said in a statement. “We ought not to allow American companies to sell this equipment to foreign governments when we see evidence that it is being used for immoral and unjust purposes.” The bill is titled the “Placing Restrictions on Teargas Exports and Crowd Control Technology to Hong Kong Act,” or the PROTECT Hong Kong Act.
U.S. and India face significant trade tensions that won't be easily solved, a trade expert said, adding that India’s Prime Minister Narendra Modi has taken more steps to close off trade than the country’s past two leaders. “I get asked, is India the next [U.S.] target?” said Rick Rossow, a senior adviser for U.S.-India policy at the Center for Strategic and International Studies. “Those of us that are in the trenches, there are already bombs dropping. There are already bullets whizzing by. It's pretty serious.”
Rep. Dan Newhouse, R-Wash., sent a letter to U.S. Trade Representative Robert Lighthizer asking him to prioritize the removal of Section 232 retaliatory tariffs from India, which have resulted in a 70 percent tariff on U.S. apples in that country. Before the U.S. hit Indian steel with 25 percent tariffs, U.S. apples were taxed at 50 percent in India. India held off on retaliation for more than a year, but when the U.S. announced it would terminate India's eligibility for the Generalized System of Preferences benefits program, it responded in kind (see 1906170053).
President Donald Trump said the U.S. will increase sanctions on Iran after his administration suggested Iran was behind an attack on Saudi Arabia's oil facilities.
Legislative discussions continue for how to shape legislation in order to regain control of trade policy from the Trump administration as the legislative branch is further pushed to the sidelines, a former senior U.S. trade negotiator said. Barbara Weisel, former assistant U.S. trade representative for Southeast Asia and the Pacific, said Congress is beginning to question how it can retake its constitutionally granted powers over trade, which have been overtaken by the Trump administration and its preference for bilateral negotiations. “One has to believe there are many members of Congress now who are debating and quietly discussing how they are going to adjust this issue,” Weisel said during a Sept. 17 event at the Brookings Institution in Washington, focused on the "America First" trade policy with regard to Japan and Taiwan. “And I think it’s about time.”
A recently reached U.S.-Japan free trade deal makes up 90 percent of the losses farmers experienced because the U.S. dropped out of the Trans-Pacific Partnership, said Senate Finance Committee Chairman Chuck Grassley, R-Iowa, during a Sept. 17 call with reporters. "I haven’t seen anything on paper, but according to [the Office of the U.S. Trade Representative], it puts us on this level playing field with our trading partners," he said.
The International Chamber of Commerce is urging the World Trade Organization to permanently ban tariffs on “cross-border data flows” as a temporary ban moves closer to expiration, the ICC said in a Sept. 17 report.