Changes to the USMCA rules of origin (ROOs) have "had a positive economic impact on the U.S. and North American auto industry, although with some challenges in implementation and new challenges emerging," according to the Office of the U.S. Trade Representative. The USTR report to Congress, mandated by Congress when NAFTA was rewritten, noted that carmakers "are still adjusting to the full scope of USMCA’s autos rules," with 13 entities given extended time to meet the stricter rules, at least for some models.
Mara Lee
Mara Lee, Senior Editor, is a reporter for International Trade Today and its sister publications Export Compliance Daily and Trade Law Daily. She joined the Warren Communications News staff in early 2018, after covering health policy, Midwestern Congressional delegations, and the Connecticut economy, insurance and manufacturing sectors for the Hartford Courant, the nation’s oldest continuously published newspaper (established 1674). Before arriving in Washington D.C. to cover Congress in 2005, she worked in Ohio, where she witnessed fervent presidential campaigning every four years.
A number of prominent trade groups, along with Winnebago, the motor home and powerboat maker with 6,000 employees, questioned the wisdom of a tariff hike from 7.5% to 25% on lithium-ion batteries outside the electric vehicle sector (Harmonized Tariff Schedule subheading 8507.60.0020).
Solar manufacturers asked for retroactive relief on Section 301 tariffs on manufacturing equipment, buyers and producers disagreed on medical product tariffs and many manufacturers supported the equipment listed, and asked for more equipment or parts for equipment that was not identified by the Office of the U.S. Trade Representative as it recommended a new round of exclusions limited to manufacturing equipment.
Sandler Travis & Rosenberg, the National Customs Brokers & Forwarders Association of America's Educational Institute, Global Trade Professionals Alliance/E-Merchants Trade Council, International Compliance Professionals Association and TrüTrade Solutions have been chosen by CBP to provide continuing education hours for customs brokers renewing their licenses.
Homeland Security Deputy Assistant Secretary for Trade Tasha Reid Hippolyte said that while the implementation of the Uyghur Forced Labor Prevention Act in its first two years hasn't been perfect, "I feel like we're in a really good space," even as there are still more pain points to work through with the trade.
Commerce Secretary Gina Raimondo told the House Energy and Commerce Committee that the content of a rule on connected vehicles made by Chinese companies hasn't been decided yet, but she said the more she learns about the ability for surveillance by advanced cars, the more it scares her.
A union request that the government impose a fee on Chinese-made vessels docking at U.S. ports via a Section 301 action confronting subsidization in China's shipbuilding sector (see 2404170029) was mentioned favorably by Democrats and Republicans at a House Select Committee on China hearing that covered Chinese efforts in that sector, semiconductors and drones.
In a bill that Republicans say is "rightsizing agencies and programs," the division of the Commerce Department that handles antidumping and countervailing duties administration would be cut by 5.7% -- $7 million -- from the current fiscal year. The bill also proposes cutting funding of the Office of the U.S. Trade Representative by 8.1% -- $6 million -- from current spending. The International Trade Commission, which manages changes to the Harmonized Tariff Schedule code, provides independent analysis crucial to the AD/CVD process, and manages the Miscellaneous Tariff Bill product nominating process, would get a 5.7% cut, $7 million less than current spending.
Importers have paid more than $160 million in tariffs that would not have existed if the Generalized System of Preferences benefits program were in place just since the House passed its version of GSP renewal in April, according to the Renew GSP Coalition. The group, joined by more than 30 trade groups and nearly 300 firms that import goods subject to GSP, said the House bill and the Senate GSP renewal that was part of a trade package that didn't make it into the Chips Act "are a strong starting point for negotiations."
Almost 20 trade groups and a handful of companies disagreed on how to ensure supply chain resilience -- many arguing that liberalizing trade with allies is crucial to reduce the likelihood of shortages, or weaponization, but others asserted that friendshoring will undermine domestic production already under stress.