President Donald Trump told reporters at the White House Feb. 12 that he might not stick to a March 1 deadline for deciding whether to raise 10 percent tariffs on about $200 billion in China imports to 25 percent. "We have $267 billion that we were very nice about and we're not taxing," he said. "The 10 percent on $200 billion goes up to 25 percent on March 1st. And so far, I've said don’t do that. Now, if we're close to a deal where we think we can make a real deal, and it's going to get done, I could see myself letting that slide for a little while. But generally speaking, I'm not inclined to do that."
Seven years after the U.S. imposed antidumping and countervailing duties on South Korean large residential washers, the World Trade Organization has given South Korea the go-ahead to retaliate on American exports up to $84.81 million, just over a tenth of what the country had sought.
The two senators from New Mexico -- Democrats Martin Heinrich and Tom Udall -- on Feb. 7 introduced the Trade Facilitation and Security Enhancement Act, S.B. 414, which would require the 10 busiest land ports of entry on the U.S.-Mexico border to be open to commercial vehicles 16 hours a day Monday through Friday and at least eight hours per weekend. The extended hours would need to be put in place no later than six months after the bill's passage. They said spending the money to modernize ports and extend hours would "increase international trade and bolster economic development in border communities."
Republican senators have been saying they don't know how the new NAFTA can be approved (see 1901310038) and the House Trade Subcommittee chairman tweeted that there's a lot of work needed before his committee would vote for it or it could pass the house. One observer said it would be a "lovely miracle" if the deal were ratified this year (see 1901290028).
Four trade lawyers from White & Case say that 2019 could have even more trade tumult than did 2018, especially if the Trump administration levies tariffs on auto imports from Europe or Japan. Their alert, published Feb. 6 and with Scott Lincicome as the lead author, talks about prospects for a China trade deal, ratification of the new NAFTA, a continuing truce with Japan and Europe, and other trade developments expected this year.
The extended period of exclusivity for biologic drugs contained in the new NAFTA language continues to draw fire from Democrats in the House of Representatives, including from the new Trade Subcommittee chairman, Rep. Earl Blumenauer, D-Ore. Although advocates believe Mexico and Canada would welcome a change to this provision (see 1811210021), Canada's foreign minister threw cold water on that idea on Feb. 6.
Tariffs on allies make it harder to convince China to change its abuses, senators said, as members from both parties held a press conference to criticize Trump administration tariff policies. They were kicking off a lobbying effort from business owners and farmers around the country called Tariffs Hurt the Heartland, which began Feb. 6.
Sen. Rob Portman, R-Ohio, a former U.S. trade representative, reintroduced his bill that would allow Congress to overrule the president on future Section 232 tariff actions, and make changes to the investigations that lead to those tariffs.
In his State of the Union address, President Donald Trump briefly talked about the China deal his administration is negotiating -- he said he's looking for "real, structural change to end unfair trade practices, reduce our chronic trade deficit, and protect American jobs." But he spent more time talking up the U.S.-Mexico-Canada Agreement, his replacement for NAFTA, which he called a catastrophe. "I have met the men and women of Michigan, Ohio, Pennsylvania, Indiana, New Hampshire, and many other states whose dreams were shattered by the signing of NAFTA," he said. By contrast, he said USMCA will deliver for workers. "I hope you can pass the USMCA into law so that we can bring back our manufacturing jobs in even greater numbers, expand American agriculture, protect intellectual property, and ensure that more cars are proudly stamped with our four beautiful words: 'Made in the USA,'" he said, to applause. He said he's making it a priority to reverse "decades of calamitous trade policies."
Russia's accession to the World Trade Organization in 2012 initially led to greater U.S. exports, but overall, its adherence to WTO rules has been disappointing, the U.S. trade representative said in his annual report to Congress. The report, released late Feb. 4, said non-tariff barriers are a greater problem than tariffs. In 2017, the U.S. exported $7 billion in goods to Russia, with aircraft accounting for one-third of the total. The U.S. imported $17 billion in goods, with oil nearly half of that and steel and aluminum about a quarter of the total.