TradeLane

As we strive in the US to obtain enough personal protective equipment to keep first responders and the general populace safe, the rules for importing these essential items seem murky at best.  There is a lengthy list of PPE products flowing into the United States, so let’s target masks for today’s discussion.

As we continue to see challenges in the news with international trade, I must remind you that along with the darkness, there is some light for importers. While the United States Section 301 China duties remain in place, the US Trade Representative has published more than 40 exclusion lists, impacting the vast majority of both large and small importers.

While we wait for the US Administration to work out details on any potential trade deal with the EU, Turkey has moved to the forefront.

Section 232 steel duties on goods produced in Turkey will be doubled to 50% effective August 13^th  with an increase for aluminum duties to 20% still pending. Automobile and automobile parts duty increases are still being contemplated. 

U.S. Customs and Border Protection has been instructed to begin collecting Section 301 duties on 818 products of China origin at the rate of 25% effective July 6^th.

The total value of the targeted goods is $50 billion.

List 1, which was implemented on July 6^th, is valued at $34 billion and the second list of products is expected to hit importers once the comment period ends.  List 2 is valued at approximately $16 billion. 

More news on the US trade remedies front. 

Steel (25%) and aluminum (10%) duties under Section 232 that were initiated on National Security grounds, appear to be even more onerous as the Trump administration has announced that products targeted for Section 232 advanced duties will lose the benefit of GSP trade preference. 

There is great concern that other free trade programs may be similarly affected on Section 232 products. 

Expect supply chain disruptions, higher costs, and litigation.