Even though President Donald Trump did not impose any tariffs on imported cars or auto parts, and said he would give trade negotiations with Europe and Japan 180 days before imposing any restrictions, many in Congress and industry responded with dismay.
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President Donald Trump said May 17 said the U.S. has also reached an agreement with Mexico to drop U.S. Section 232 tariffs. The Mexican government issued a statement that said it would be lifting all its retaliatory tariffs in response. Mexico had targeted U.S. pork, dairy and metals. Mexican President Andres Lopez Obrador noted in the statement that this agreement will allow the countries to move forward with ratifying the new NAFTA, which is known in that country as the Treaty between Mexico, the United States and Canada, or T-MEC, for the Spanish acronym. The Mexican statement did not say how quickly the tariffs and retaliatory tariffs would be lifted. A joint statement from Canada and the U.S. said tariffs would end under a similar agreement within 48 hours.
President Donald Trump issued a proclamation saying that he may take action under Section 232 to restrict auto and auto part imports if negotiations with the European Union and Japan don't make way for higher sales for American carmakers.
Turkish exports are no longer eligible for the Generalized System of Preferences, and Turkish solar cells and residential washers are also now subject to safeguard tariffs. The changes took effect May 17.
The 25 percent Section 232 tariffs on Canadian steel and the 10 percent tariffs on aluminum will be removed within 48 hours, Canada and the U.S. said May 17. When the metals tariffs are removed, Canada will also roll back its retaliatory tariffs, which hit American metals and agriculture, as well as some prepared food. The joint statement said stricter customs enforcement to prevent transshipment will be coordinated between Canada and the U.S.
Section 232 steel and aluminum tariffs on Canada and Mexico are going away, the U.S. said May 17. They will be lifted from Canadian imports within 48 hours, but the Mexican government has not indicated timing for the relief there, and the Commerce Department did not respond to an inquiry by press time. Canada and Mexico will lift their retaliatory tariffs, which hit U.S. prepared food, agriculture and metals, at the same time the U.S. tariffs end.
CBP has responded to fast-moving developments in international trade with predictability and transparency, said Brenda Smith, CBP executive assistant commissioner-trade, while speaking May 16 at a U.S. Chamber of Commerce event. With the Section 301 tariffs and other trade remedies, the agency has given the trade community the necessary information "as quickly as we can provide it," Smith said. "Just last week, in response to a setback in the ongoing U.S.-China trade talks, CBP responded rapidly to the 15 percent increase in China 301 duties. We consulted closely with USTR and the International Trade Commission to streamline the operational impact of the administration's policy goals, provided guidance to CBP field employees and the trade community and expedited programming changes" to ACE "to ensure that trade continued to flow."
Canadian Foreign Minister Chrystia Freeland, speaking May 15 at the U.S. Capitol after meeting with the head of the Senate Finance Committee and the House Trade Subcommittee chairman, declined to predict when the U.S. and Canada might reach a resolution on Section 232 tariffs and Canada's retaliatory tariffs because of them. Treasury Secretary Steven Mnuchin testified earlier in the day in the Senate, and said there that "I think we’re close to an understanding with Mexico and Canada" on the tariffs.
Brokers Should Protest Liquidations Subject to Pending Tariff Exclusion Requests, C.H. Robinson Says
Importers should have their customs broker file a protest on liquidated entries that are subject to pending exclusion requests on the Section 301 or Section 232 tariffs, C.H. Robinson said in a notice to customers posted May 15. "Entries typically liquidate 314 days after entry date," the company said. "However, we have seen some entries liquidate sooner. If you have a product exclusion request pending, and your entry liquidates before it has received a determination, request that your broker submit a protest to CBP with the notation 'Section 232 (or 301) product exclusion pending.' That notation will allow time for the product exclusion to be determined." That way, if the exclusion is approved, "the protest can be amended to include the exclusion number or information and a duty refund to be issued," and "if denied, the protest can be withdrawn." A CBP official recently said the agency will be unable to give any refunds once a protest period expires even if an exclusion is later granted (see 1905090059).
The Trump administration will wait at least another six months before taking action in response to the Commerce Department's Section 232 investigation into automobiles and auto tariffs, CNBC and other outlets reported May 15. The administration plans to make use of the Section 232 provisions that allow for an 180-day delay while negotiations continue, CNBC said. It remains unclear whether the White House will detail its planned response to the investigation when it announces the delay.