June ’22 at-a-glance … taxes, tariffs & trade
USTR Section 301 Sunset Review underway; nine senators oppose lifting tariffs
Nine U.S. Senators recently wrote to President Biden urging him not to lift the Section 301 tariffs. Senators who signed onto the letter include Rob Portman (R-OH), Sherrod Brown (D-OH), Mitt Romney (R-UT), Mike Braun (R-IN), Kevin Cramer (R-ND), Rick Scott (R-FL), Bob Casey (D-PA), Jim Inhofe (R-OK), Elizabeth Warren (D-MA). The Senators said, “Rolling back the tariffs on China would undermine the U.S. position in negotiations, expose many U.S. companies and workers to a sudden flood of imports, and signal to China that waiting out the U.S. is preferable to changing their non-market behavior or complying with the phase one agreement.”
As of June 1, the United States Trade Representative (USTR) received 17 requests to continue the Section 301, List 1 tariffs. For List 1, the deadline to submit a request to continue the action is July 5. For List 2, the deadline is Aug. 22. Any interested person may provide comments. Additional information is in the Federal Register notice.
Tariff Rate Quote on imports of U.K. steel now in place
The U.S/UK tariff rate quota (TRQ) for steel imports from the UK took effect June 1. About 551,000 tons of steel can now be imported duty free. After this volume is reached, a 25% tariff will apply. The volume will be adjusted annually based on U.S. steel demand data from the World Steel Association. The agreement also requires independent audits of any UK-based steel producers with Chinese ownership to determine the degree of influence the Chinese government has on these companies.
Section 232 tariffs on imports from Ukraine suspended for one year
On May 27, President Biden suspended Section 232 duties on imports of steel and derivative steel articles from Ukraine for one year.