There's the possibility of an agreement on currency manipulation this week, according to U.S. Chamber of Commerce Head of International Affairs Myron Brilliant. Brilliant, who spoke with both China's chief negotiator and members of the Trump administration ahead of the Oct. 10 negotiating session, told reporters on a conference call that if the two sides come up with a currency agreement, that might lead to a reprieve for importers who are expecting 25 percent tariffs to go to 30 percent on Oct. 15.
The Office of the U.S. Trade Representative confirmed that European goods that are part of the Airbus action (see 1910020044) must clear customs before midnight on Oct. 18 in order to avoid an additional 25 percent or 10 percent duty. That means the applicability of the tariffs will be based on the date of entry and not the date of export.
Trade groups representing importers, retailers and producers largely reacted with dismay to the news that the U.S. would collect 25 percent tariffs on billions of dollars' worth of European goods, as an inducement for the European Union to stop subsidizing Airbus aircraft launches.
Many things about the U.S.-China trade war have not turned out as experts expected, panelists said at the Washington International Trade Association Oct. 2. Chad Bown, a trade economist at the Peterson Institute for International Economics and former White House economist, said that 18 months ago, people would have not expected there to be 15 percent to 30 percent tariffs on more than half of Chinese imports, with nearly all the rest slated for tariffs by December, and yet, the economy is doing OK. "Markets haven't panicked," he said. But Bown said he's not that surprised that the country hasn't seen a massive effect from the trade war, since the tariffs in place the longest were on inputs, and because, compared to the size of the entire economy, "we don't actually trade all that much."
Tariffs of 25% Will Be Imposed on Billions' Worth of European Imports on Oct. 18; USTR Releases List
Although the U.S. is authorized to levy "prohibitive" tariffs -- up to 100 percent -- on $7.5 billion in European imports, senior U.S. trade officials say they have decided to impose 10 percent tariffs on large civil aircraft and 25 percent tariffs on some European food products, British apparel, blankets and bed linen, some Irish and Scotch whiskey, German or British hand tools, lenses, books and self-propelled heavy equipment. The tariffs will go into effect Oct. 18, the officials said, and a Federal Register notice with the details is expected Oct. 3. The USTR's full list includes more than 150 tariff lines, though some are only part of the eight-digit line.
More than a dozen companies and business groups have submitted comments ahead of an Oct. 2 hearing on how China is complying with World Trade Organization protocols -- and they all agree China has work to do.
House Ways and Means Committee Chairman Richard Neal, D-Mass., who leads the working group tasked with getting fixes to the NAFTA rewrite, said that Democrats and the U.S. trade representative have "reached agreement on a couple of substantial issues." Neal, who earlier told International Trade Today that he hopes to have a vote on the deal before Thanksgiving, said the progress at the staff level during the two-week recess that starts Sept. 30 will be critical. He said he hopes that when the working group returns, "we'll have a chance to see the goal line."
While U.S. authorities have not released any details on U.S. tariff reductions for Japanese imports, even to stakeholders, a press release from Japan's Economy, Ministry and Industry describes the reductions, which will add up to tens of millions of dollars annually.
When Democrats met in the House of Representatives the morning after House Speaker Nancy Pelosi formally initiated an impeachment inquiry, the bulk of the meeting was an optimistic briefing on the progress toward refining the U.S.-Mexico-Canada Agreement to satisfy Democratic priorities.
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, said tariffs on autos are not related to national security. When asked to respond to news reports that the U.S. and Japan could not finish a deal because the U.S. was not willing to promise to spare Japanese autos from those tariffs, he said, "The president ought to give that assurance and get this show on the road."