Brazil is establishing tariff rate quotas on a range of imports and reducing import tariffs “to correct a lack of supply in the Brazilian market,” according to a July 19 report from the Hong Kong Trade Development Council. Certain products -- including insecticides, “monochloroacetic acid,” polyester yarn, acrylic filament tow and certain vaccines -- will have their tariff rates reduced to 2 percent for one year, the report said. The reduced rates for each item will take effect at different times, ranging from July to December.
India announced several changes in duty rates as part of its 2019 budget, including tariff cuts to certain electrical-related imports and tariff increases on certain auto parts and metals, according to a July 22 report from the Hong Kong Trade Development Council. India announced exemptions on import tariffs for certain electrical “components,” including “e-drive assemblies, on-board chargers, e-compressors and charging guns,” the report said. The items will not be subject to the 10 percent customs duty in an effort to spur electric vehicle production in India, the report said. The country also increases tariff rates on certain auto-related goods, including rear-view mirrors, car locks, oil filters and air conditioner units, the report said. Those changes were made to “curtail the level of non-essential imports and boost domestic production” in India, the report said. The changes took effect July 6.
The U.S. Department of Agriculture is giving $100 million to 48 trade associations and organizations in an effort to help U.S. agriculture exporters find new markets, the USDA said in a July 19 press release. Representatives from the U.S. agricultural industry have repeatedly told Congress that the U.S. trade war with China and the delay in ratifying the U.S.-Mexico-Canada Agreement are significantly hurting U.S. exports. Some fear they will not be able to regain certain export markets in China. Others said trade mitigation programs are not the solution (see 1905290041).
Xinhua, China's official state-run news agency, reported July 21 that some Chinese firms have requested that retaliatory tariffs on U.S. agricultural goods be lifted, and have made inquiries with U.S. producers about purchasing those goods. The report did not say which commodities are being considered, or in what quantities. However, it noted that the U.S. recently "expressed willingness to encourage U.S. businesses to continue providing supplies for Chinese enterprises," a potential reference to Huawei, and that the government exempted 110 industrial products from Section 301 tariffs. President Donald Trump tweeted July 11 that "China is letting us down in that they have not been buying the agricultural products from our great Farmers that they said they would. Hopefully they will start soon!"
The Commerce Department’s presumption of denial for Huawei-related export licenses may no longer apply, Akin Gump lawyers said during a July 18 webinar.
American farmers are losing market share in Japan as Canada and Australia get the benefit of lower tariffs through the Trans-Pacific Partnership and European producers also get benefits through their region's free trade agreement with Japan.
Three trade experts discussing the role of technology in the U.S.-China trade war were split over how and when the two nations will reach a trade deal, with two saying they expect a deal soon and one saying China is willing to wait until a potentially new administration in 2020. But the experts, speaking July 18 during a panel at the Brookings Institution, agreed on one point: If there is a deal, the ban on Huawei Technologies will be lifted.
Rep. Ron Kind, a pro-trade Democrat from a rural district in Wisconsin, is questioning the Trump administration's claims that large-scale purchases of commodities would follow the meeting of the Chinese and U.S. presidents at the G-20 Summit in Japan. He sent a letter to Larry Kudlow, the president's chief economic adviser, and to Agriculture Secretary Sonny Perdue on July 17 making this point. "On July 15, Mr. Kudlow stated that the Administration expects that China will soon be announcing 'some large scale purchases' but offered no further details. Farmers in Wisconsin and around the country are under intense pressure to stay above water, and any notifications of additional agricultural purchases should be clearly communicated to the Congress and the public."
China believes that trade “frictions” with the U.S. “should be resolved through dialogue and consultation,” a Foreign Affairs Ministry spokesperson said on July 17. He was asked about President Donald Trump’s July 16 Cabinet meeting remarks that the U.S. has a “long way to go” before reaching a trade deal with China and can still impose the threatened List 4 Section 301 tariffs on $325 billion worth of Chinese goods “if we want.” If the U.S. “thinks there is still a long way to go before a deal is concluded, well, as the Chinese saying goes, a journey of a thousand miles begins with a single step,” the spokesperson said. “No matter how long the way is, as long as you step forward, you will eventually reach the destination.” In the face of the U.S. threat to impose the List 4 duties, “China will firmly defend its own interests,” the spokesperson said. “If the U.S. does impose new tariffs, that will indeed set new obstacles for the trade talks. There will be an even longer way to go before reaching a deal.”
The U.S. will not sell F-35 fighter jets to Turkey because of the country’s recent purchase of Russian defense items, including S-400 missile parts, President Donald Trump said during a July 16 Cabinet meeting. But Trump did not say whether the U.S. would impose sanctions on Turkey, adding that he has a “good relationship” with Turkish President Recep Tayyip Erdogan and that Turkey was placed in a “very tough situation.” Trump said the U.S. is “speaking to Turkey.” “With all of that being said, we’re working through it,” Trump said. “We’ll see what happens."