As expected, the Trump administration has announced a new round of 25 percent tariffs on an additional $16 billion in imports from China. The new tariffs will go into effect on Aug. 23, on the heels of the tariffs imposed on $34 billion of Chinese imported goods – Section 232 on steel and aluminum — which began July 6.

In yesterday’s announcement, (August 7) the administration said it would proceed with the new tariffs on 279 of the 284 items it had proposed for the second wave. The new tariffs target industrial supplies, chemicals, motorcycles, tractors and tractor parts, rail cars, auto parts, some iron and steel, motor and machine components and more.

See the finalized list of affected goods HERE.

Meanwhile, China’s Ministry of Commerce announced it would retaliate, releasing an updated list of U.S. items it said it would target with similar tariffs, also effective August 23, according to the Wall Street Journal. The items include various chemicals and medical equipment, as well as certain types of sedans and diesel vehicles.

In this rapidly changing environment, we are advising clients to consider the following:

• Know whether your imports are affected and decide what you’re going to do about it.
• If you have a question about whether your products are affected by the tariffs, we may be able to help. We can tell you what impact the tariffs will have on your shipments, and help you file an exemption.
• Don’t panic, but also don’t ignore the possible significant impact to your business.

This continues to be a very fluid situation, and we are here to help you find the proper course of action.

Contact me if we can be of help and check back on our website at www.wbskinner.com for frequent updates.

Record volumes in port traffic have been recorded throughout the U.S. by ports across the country during the first half of 2018. The Port of New York and New Jersey, for example, reported year-to-date volume through May, of 2,825,103 TEUs, 6.8% higher than year ago.

However, several port directors are worried that the boost in business will be affected bypotential economic tariffs issued by the U.S. and retaliatory efforts by other nations in response. As of today, the situation remains fluid; the White House announced yesterday a new initiative with the European Union to slash tariffs on industrial goods except cars, although tariffs on steel and aluminum imports remain in place.

In an interview with Transport Topics (July 19), Kurt Nagle, president of the American Association of Port Authorities, cited a general increase in business at all the ports. “Trade in general is up, so it’s a far more broad barometer, opposed to Port X gaining at the expense of Port Y,” he said.

In recent testimony before a Senate Finance Subcommittee, Nagle expressed the AAPA’s concern that tariffs could, when coupled with retaliatory actions by America’s trading partners, “adversely affect employment at ports and throughout the goods-movement supply chain.”

He urged that before any sanctions be put into place, the impact to the whole transportation network and its affected jobs, be evaluated.

Meanwhile, portions of a series of new import tariffs (Section 232 on steel and aluminum) went into effect on July 6. The Administration has also warned of additional tariffs on auto and auto parts, although the exact terms are not yet clear.

If your goods may be affected by current and/or future tariffs, we advise you to do the following:

• Know whether your imports are affected and decide what you’re going to do about it.
• If you have a question about whether your products are affected by the tariffs, we may be able to help. We can tell you what impact the tariffs will have on your shipments, and help you file an exemption.
• Don’t panic, but also don’t ignore the possible significant impact to your business.

This continues to be a very fluid situation, and we are here to help you find the proper course of action.

Contact me if we can be of help and check back on our website at www.wbskinner.com for frequent updates.

President Trump has signed two proclamations assessing additional duties on the importation of aluminum and steel articles, effective March 23, 2018. For the time being, Mexico and Canada are exempt from the tariffs pending NAFTA negotiations. Top trade negotiator Robert Lighthizer will be responsible for working out deals with other countries seeking exemptions.

The President stated that the tariff initiative was triggered by a Commerce Department investigation that found that imports of the metals pose a risk to national security. The probes were authorized under the seldom-used Section 232 of the 1962 Trade Expansion Act, which gives the President broad powers to impose trade restrictions on domestic security grounds.

The President instituted a 25% tariff on steel and a 10% tariff on aluminum imports.  The steel tariffs appear to be primarily on raw material, with “articles of steel” outside the scope of these tariffs.

“Steel articles” are defined at the Harmonized Tariff Schedule (HTS) 6-digit level as:
*   7206.10 – 7216.50 (Iron or Non-Alloy Steel in ingots or other primary forms, semi-finished products, flat-rolled products, bars and rods, and angles/shapes/sections excluding cold-formed and cold-finished from flat-rolled products)
*   7216.99 – 7301.10 (Angles/shapes/sections, wire, sheets and Stainless Steel and other alloy steel material.
*   7302.10, (Railway and Tramway track rails)
*   7302.40 – 7302.90, (Railway and Tramway construction material)
*   7304.10 – 7306.90, (Non-Cast Iron Tubes, Pipes, and Hollow Profiles)

We recommend importers note the exclusions above and evaluate their products accordingly.

WB Skinner urges importers to be familiar with the affected materials and to be aware of the implications for their businesses.

President Obama signed the Generalized System of Preferences (GSP) renewal bill on June 29, the White House announced, following its passage in Congress last week. The long-delayed legislation renews GSP and refunds tariffs paid on eligible imports.

The law takes effect on July 29, 2015, almost two years since it expired, and expires in December, 2017.

GSP allows 126 developing countries and territories to export thousands of goods to the United States without paying import duties depending upon the classification.

Many importers have been paying duty on these goods since July 2013, because of the Congressional delay on the legislation. With the passage of HR 1295, importers will now get refunds on those payments.

If you are a current client of WB Skinner, you will receive your refunds automatically.

If you are not a current WB Skinner client, contact Bill Skinner to find out how to receive your refunds.

Originally intended as a development program for poor countries, supporters of GSP say it also helps U.S. companies and consumers by reducing costs and creating jobs. In hailing the enactment of the GSP renewal, the Coalition for GSP said that now “companies can talk about all the positive effects stemming from GSP reauthorization – from increasing sales to new investments to hiring (or rehiring) and rewarding workers.”

According to the Office of the U.S. Trade Representative, U.S. businesses imported $19.9 billion worth of products under the GSP program in 2012, including many inputs used in U.S. manufacturing.

Essentially, GSP gives duty free status to certain commodities from certain underdeveloped nations.

To contact WB Skinner, email us.