China will raise tariff rates on 5,140 tariff lines of U.S. goods in response to the latest escalation in the trade war, the Chinese Foreign Ministry announced May 13. It is not increasing tariffs on the U.S. imports that have not yet been part of retaliation. Instead, it is increasing the previously imposed punitive tariffs from 10 percent to 20 or 25 percent, and increasing other tariffs from 5 percent to 10 percent.
The U.S. trade war with China and the stalled revision of NAFTA have severely limited their export markets, filling their warehouses with unmovable products and slashing their revenues, farmers said during a House hearing on the state of the farm economy. The farmers called for a quick resolution of trade disputes with China and ratification of the U.S.-Mexico-Canada Agreement, and suggested another market facilitation program similar to the relief package the Trump administration authorized in 2018 to aid farmers suffering from ongoing sparring over tariffs.
President Donald Trump will appoint Dow CEO James Fitterling and Joseph Nicosia of Louis Dreyfus members of the Advisory Committee for Trade Policy and Negotiation for four-year terms, the White House said.
Canadian Minister for International Trade Diversification James Carr said Canada is "following with great interest" what the Senate Finance Committee chairman and other Republicans senators are saying about Section 232 tariffs. "We will see how they decide to work that out," he said at the Council of the Americas conference May 7. He said that even though none of the countries got everything they wanted in the new NAFTA, Canada's government wants to see it ratified. "We negotiated for 14 months in good faith, we found alignment with our trading partners, we want to see it ratified. There are irritants, though, and the 232 tariffs on the steel and aluminum -- which we believe to be unwarranted -- are a real problem. It's going to be difficult to ratify the agreement as long as those tariffs are in place." He said Canadians are talking with U.S. counterparts about the tariffs, "and we hope they will be removed."
A vote on the U.S.-Mexico-Canada Agreement will “hopefully” be soon, House Speaker Nancy Pelosi said, but stressed that the deal needs strong enforcement provisions before any progress will be made. During a Washington Post Live interview on May 8, Pelosi said an enforcement agreement is a prerequisite to any vote. “Unless you have it built into the agreement … it’s not binding on the other country. It’s us talking to ourselves,” she said. In a recent conversation with U.S. Trade Representative Robert Lighthizer, Pelosi said, she urged him to include enforcement in the agreement, or else the agreement is “not a serious thing.” Pelosi said the Trump administration has expressed a desire to work on enforcement and said Trump has told her “we want to get to a yes” on the deal. “So hopefully that will be soon,” she said.
The Trump administration on May 8 announced an executive order placing sanctions on Iran’s iron, steel, aluminum and copper sectors in what it said are the country’s “largest non-petroleum-related sources of export revenue."
China will take “necessary countermeasures” if the U.S. follows through on threats to increase tariffs on Chinese goods, according to an unofficial translation of a statement released by the Chinese Ministry of Commerce on May 8. “The escalation of trade friction is not in the interests of the people of the two countries and the people of the world,” the statement said. “The Chinese side deeply regrets that if the US tariff measures are implemented, China will have to take necessary countermeasures.”
The National Marine Manufacturers Association celebrated Canada's full removal of tariffs on multiple types of boats from the U.S., in a May 6 news release. The Department of Finance Canada recently announced the change, which is expected to run in Canada Gazette on May 15, the NMMA said. Effective April 30, Canada's 10 percent retaliatory tariffs won't apply to the following items:
Commerce Secretary Wilbur Ross, speaking May 7 in New Delhi, chided India for its high tariffs and non-tariff barriers, blaming them for the trade deficit with the U.S. He did not acknowledge the termination of the Generalized System of Preferences benefits for India. Although the administration warned India could be terminated from the GSP program as of May 4, so far, that has not happened. However, Ross did tell a local TV station, according to Reuters, that retaliation for the end of GSP would be inappropriate.
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