Trade Talks Continue, Tariffs Continue to be a Battleground

Kendra Ansley

Executive Director | Kendra.Ansley@natm.com

U.S. Trade Representative Announces Some List 1 Exclusions, List 3 Still Uncertain
The U.S. Trade Representative (USTR) announced some exclusions to Section 301 List 1 tariffs. The list is not lengthy and represents perhaps only ancillary components affecting trailer manufacturers, if any. The notice of exclusions and complete list can be found here. The exclusions are retroactive to July 6, 2018. Importers can file post summary corrections or protests to obtain refunds from tariffs already paid on these items. Mowry & Grimson, a DC based legal group, reports that more than 10,000 exclusion requests have been filed for List 1 with more than 5,000 of those having been denied already.

The indefinite tariff escalation delay from 10% to 25% of Section 301 List 3 duties is still very much up in the air. While List 3 remains without an exclusion request opportunity, List 2 exclusion requests, totaling almost 3,000 in number, still remain pending a decision. NATM will keep member apprised as exclusions continue to be processed and negotiations with China continue.

Section 232 Challenge Denied in Court of Appeals
The U.S. Court of International Trade (CIT) rejected a challenge on Monday against the enforcement of the President’s tariffs on certain steel imports under Section 232. As a reminder, Section 232 allows the President to take action to adjust the level of specific imports when the Secretary of Commerce has determined said imports threaten to impair the national security of the U.S. This adjustment of imports is to last until they no longer pose a threat to national security.
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The challenge alleged that the delegation of legislative authority was in violation of the Constitution. The CIT found that a previous Supreme Court case created a precedent that forced the three judges to reject the challenge. Some legal analysis contends the majority and dubitante opinions have left the door open for an appeal to the U.S. Court of Appeals for the Federal Circuit and perhaps ultimately the Supreme Court. The parties have 60 days to appeal.