Sen. Bob Corker, a Republican Trump critic from Tennessee who is retiring at the end of the year, told reporters in the Capitol June 5 that he will be introducing a bill that would not allow the president to implement tariffs or quotas based on national security concerns without congressional approval. That authority was given to the executive branch in 1962. According to a source familiar with the bill, if passed, it would require the president to submit to Congress actions under Section 232 of the Trade Expansion Act of 1962. "For a 60-day period following submission, legislation to approve the proposal will qualify for expedited consideration, guaranteeing the opportunity for both debate and a vote." This would give Congress an opportunity to veto tariffs on autos and auto parts -- an investigation under Section 232 recently began (see 1805240002). The bill would also apply to the administration's steel and aluminum tariffs and quotas, the source said.
CBP issued the following releases on commercial trade and related matters:
International Trade Today is providing readers with some of the top stories for May 29 - June 1 in case they were missed.
Mexico released a list of U.S. goods that will face new tariffs as a result of the U.S. Section 232 tariffs that now apply to steel and aluminum from Mexico. Most of the new Mexican tariffs took effect June 5, while others will be phased in through July 5, Mexico said in the notice. The European Union and Canada also recently released their lists of retaliatory tariffs (see 1806010022), though neither has taken effect yet. The tariffs on U.S. goods are a response to the Trump administration's decision to end the exemptions from tariffs on steel and aluminum goods from the EU, Canada and Mexico (see 1805310028).
Canada requested a Chapter 20 panel under NAFTA to dispute the imposition of steel and aluminum tariffs, Foreign Affairs Minister Chrystia Freeland announced June 1. That's in addition to filing a complaint at the World Trade Organization. Canada says the U.S. is violating international trade obligations with its "improper use of national security pretexts for protectionist purposes." "Canada will closely collaborate with the European Union, which also filed a WTO challenge...." she said. She also noted that U.S. law designates Canada as part of the military industrial base. Earlier, Canada issued its list of goods that will face retaliatory tariffs (see 1806010022), which included appliances, mattresses, maple syrup, condiments and candy, in addition to aluminum and steel goods.
The government of Canada recently issued the following trade-related notices as of June 1 (some may also be given separate headlines):
New tariffs on U.S. goods exported to the European Union and Canada touch on a wide range of products, with a heavy focus on steel and aluminum products. The EU and Canadian tariffs are meant as a response to the Trump administration's decision to end the exemptions from tariffs on steel and aluminum goods from the EU, Canada and Mexico (see 1805310028). Mexico also plans to initiate new tariffs on U.S. goods, though it has not yet publicly released a list of Harmonized Tariff Schedule subheadings, a spokeswoman for the Mexican Embassy in the U.S. said. China put new tariffs in place in April in response to the Section 232 tariffs.
The International Trade Commission issued Revision 5 to the Harmonized Tariff Schedule late on May 31. Most changes are intended to implement the end of temporary country exemptions for the European Union, Canada and Mexico and new agreements subjecting steel from Argentina and Brazil, and aluminum from Argentina, to quotas. Quotas on steel are also changed to implement a new lower threshold for three-month quota provisions. All changes take effect June 1.
Japanese and EU trade leaders noted their concerns with potential new U.S. tariffs on cars and car parts under a Section 232 investigation (see 1805240002) in a joint statement from Paris on May 31. "The measures under consideration in the investigation on autos and auto parts, if imposed, would have a major restrictive impact affecting a very substantial part of global trade," said European Union Commissioner for Trade Cecilia Malmstrom and Japanese Minister for Economy, Trade and Industry Hiroshige Seko. "This would cause serious turmoil in the global market and could lead to the demise of the multilateral trading system based on [World Trade Organization] rules. Both ministers also confirmed their intention to cooperate closely in discussing these concerns with the United States and call on other like-minded countries to join their efforts," the statement said. Those leaders also met with U.S. Trade Representative Robert Lighthizer that day and issued a separate joint statement (see 1805310020).
CBP issued the following release on commercial trade and related matters: