The broad range of U.S. sanctions are confusing U.S. allies, seem to have no clear goal and could damage future administrations' ability to levy sanctions, several experts on U.S. sanctions said. The U.S. actions are also allowing countries to create sanctions immunities and leading to divisions in Europe, they said, criticizing the Trump administration’s lack of planning for potential consequences.
Sen. Tammy Baldwin, D-Wis., and Sen. Josh Hawley, R-Mo., say an overvalued dollar and other countries' efforts to devalue their currencies created the trade deficit that meant "90,000 factories have closed down, thousands of family farms have gone bankrupt, and millions of manufacturing workers have lost their jobs." The Midwestern senators have introduced a bill, called the Competitive Dollar for Jobs and Prosperity Act, that aims to fix that. They announced the bill -- along with support from Trump allies like the Coalition for a Prosperous America -- on July 31.
The Senate Foreign Relations Committee passed a bill on July 31 that would sanction anyone involved with Russia’s Nord Stream 2 gas pipeline. The bill authorizes the Trump administration to impose a series of sanctions on those involved, including restricted use of the U.S. Export-Import Bank, restricted export licenses, asset freezes and more. The administration cannot use the measures to ban a sanctioned person from importing goods into the U.S., the bill said. If Congress passes the bill, the State Department would be required to submit an annual report to Congress on all entities involved in the pipeline project.
U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin traveled to Shanghai for July 30 and 31 talks on a comprehensive U.S.-China trade deal, the White House said July 30. Vice Premier Liu He and Commerce Minister Zhong Shan led the Chinese delegation, it said. “The two sides discussed topics such as forced technology transfer, intellectual property rights, services, non-tariff barriers, and agriculture.” The Chinese “confirmed their commitment to increase purchases” of U.S. agricultural exports, it said. “The meetings were constructive, and we expect negotiations on an enforceable trade deal to continue” in Washington in early September, it said. The Shanghai meetings were the 12th round of negotiations that started in December, and were the first face-to-face talks between the sides since the negotiations broke down in May over Trump administration allegations that the Chinese reneged on previously agreed-to commitments. Overhanging the talks is the threat that the administration could put the List 4 Section 301 tariffs into effect at any time on virtually all Chinese goods not previously dutied.
President Donald Trump told a Brazilian reporter July 30 that the U.S. will work on a free trade agreement with Brazil. Trump, who spoke about Brazilian trade talks at gaggles both before and after his trip to Jamestown, Va., said, "Brazil is a big trading partner. They charge us a lot of tariffs, but other than that we love the relationship." He said he's sure they'll be successful at trade talks. "I have a fantastic relationship with your president," he told the Brazilian reporter. "And he's a great gentleman. He was here, as you know. In fact, they say the 'Trump of Brazil.' I like that. That’s a compliment."
The Treasury’s Office of Foreign Assets Control sanctioned Mohammad Javad Zarif, Iran’s foreign minister and spokesman, Treasury announced July 31. The move comes about a month after Treasury Secretary Steven Mnuchin told reporters in June that President Donald Trump was planning to sanction Javad Zarif (see 1906240046). “Javad Zarif implements the reckless agenda of Iran’s Supreme Leader, and is the regime’s primary spokesperson around the world,” Mnuchin said in a statement. “At the same time the Iranian regime denies Iranian citizens’ access to social media, Foreign Minister Javad Zarif spreads the regime’s propaganda and disinformation around the world through these mediums.”
A top Treasury official acknowledged criticism that the agency is abusing its sanctions powers but stood by the approach, saying the sanctions are necessary and that the Treasury is mitigating impacts on U.S. companies by issuing more compliance guidance.
The Senate on July 29 failed to override President Donald Trump’s vetoes of three separate resolutions blocking the U.S.’s arms deal with Saudi Arabia and with the United Arab Emirates. The effort failed in each of the votes -- 45-40, 45-39 and 46-41 -- which needed a two-thirds majority to pass. The sales, announced in May by the State Department, used the Arms Export Control Act’s emergency provision to bypass congressional approval and move forward with 22 arms transfers worth about $8 billion to Saudi Arabia, the United Arab Emirates and Jordan.
U.S. Trade Representative Robert Lighthizer told Sen Pat Roberts, R-Kan., that the U.S and Europe are at an impasse on trade talks, because the EU is not willing to talk about its barriers to U.S. agriculture exports.
Export Compliance Daily is providing readers with some of the top stories for July 22-26 in case they were missed.