As reported in our post of January 25, 2019, members of the 116th session of Congress are seeking ways to address President Donald Trump’s authority to unilaterally impose tariffs under various statutes. This trend continued on January 30, 2019, with the bipartisan introduction of the Bicameral Congressional Trade Authority Act. Introduced by Sens. Mark Warner (D-VA) and Pat Toomey (R-PA), this bill would restore to Congress its Article I constitutional authority over foreign trade and commerce, specifically focusing on tariffs implemented under the claim of “national security.” The senators stated that recent Trump administration Section 232 actions have been economically disruptive and have damaged U.S. relationships with its allies, including Mexico, Canada, Japan, the EU and India.
Tariffs/Trade Policy
Trade-Related Agencies Reopen, and Many Toll Deadlines from Government Shutdown
With the 35-day partial federal government shutdown ending on January 26, 2019, the U.S. government’s trade-oriented agencies have reopened and are beginning to work through massive backlogs of work as personnel resume full-time operations. What follows is a listing of the current operational status of many of these agencies:
U.S. Customs and Border Protection (CBP)…
Chinese Telecom Giant Huawei Charged with Substantive Sanctions Violations; 23 Total Criminal Charges Overall
The U.S. Department of Justice (DOJ) unsealed two separate indictments on Monday, January 28, 2019, charging Chinese telecommunications giant Huawei with 23 counts of criminal activity. In the Eastern District of New York (EDNY), a 13-count indictment was released charging four defendants affiliated with Huawei. In the indictment, Huawei Technologies Co., Ltd., Huawei Device USA Inc., Skycom Tech Co. Ltd. (Skycom) and Huawei’s Chief Financial Officer Wanzhou Meng were charged with a variety of crimes, including bank fraud, conspiracy to commit bank fraud, wire fraud and violations of the International Emergency Economic Powers Act (IEEPA), which serves as the statutory authority for the Iranian Transactions Sanctions Regulations (ITSR). In the Western District of Washington, the second unsealed indictment charges Huawei Device Co., Ltd. and Huawei Device USA, Inc. with 10 counts of theft of trade secrets conspiracy, attempted theft of trade secrets, wire fraud and obstruction of justice where Huawei employees were allegedly encouraged to steal technology from T-Mobile USA, Inc., a large U.S. telecommunications company.
Competing Tariff Bills Introduced in Congress
This month, two bills have already been introduced in the House of Representatives that show the division among Republican Party members over President Donald Trump’s authority to impose tariffs. On one side of the debate, Rep. Warren Davidson (R-Ohio) introduced the Global Trade Accountability Act of 2019, which seeks to restore Congress’s constitutional authority over trade and international commerce, including approval on tariffs, duties and quotas. In a brief statement, Davidson stated that the bill seeks to “support the President’s Constitutional authority to negotiate trade deals, and restore Congressional responsibility for reinforcing, improving, and approving trade policy.” The bill would require congressional approval for any “unilateral trade action” by the president – including any of the following actions concerning the importation of an article: (i) a prohibition on the importation of the article; (ii) the imposition of or an increase in a duty applicable to the article; (iii) the imposition or tightening of a tariff-rate quota applicable to the article; (iv) the imposition or tightening of a quantitative restriction on the importation of the article; (v) the suspension, withdrawal or prevention of the application of trade agreement concessions as to the article; or (vi) any other restriction on the importation of the article. Before such trade actions could be implemented, the president would be required to submit to Congress a report providing sufficient details on the proposed trade action, and a joint resolution would have to be approved. Davidson previously introduced the bill in the last session of Congress but the legislation did not advance. It is possible, however, that there may be a shifting of congressional direction on this matter given the ongoing trade dispute with China and recent statements from Sen. Chuck Grassley (R-Iowa) that he, as chairman of the Senate Finance Committee, intends to introduce legislation that would limit the president’s authority to impose tariffs.
White House Releases Fact Sheet on President Trump’s First Two Years in Office
The White House has released a fact sheet listing the “historic results” of President Donald Trump’s first two years in office. For international trade, these results are listed:
”NEGOTIATING BETTER DEALS FOR THE AMERICAN PEOPLE: President Trump is negotiating fair and balanced trade deals that protect American industries and workers.
- President Trump negotiated a new
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USTR to Begin Furloughing Staff
Three weeks after the partial federal government shutdown began and shuttered most of the trade-related government agencies in Washington, D.C. (see Trump and Trade Update dated December 26, 2018), the Office of the U.S. Trade Representative (USTR) – which had remained fully operational – has indicated that it will begin to furlough staff on…
2018 Year in Review – Overview of President Trump’s Major Trade Actions
International trade and international trade disputes were a predominant focus of President Trump and his trade officials throughout 2018. Thompson Hine’s Trump and Trade team has prepared a slide presentation to provide our readers with a broad overview of the most significant trade actions taken by the Trump administration last year. From the renegotiation of…
U.S. Trade Representative Grants First Round of Product Exclusions for U.S. Imports from China Subject to Section 301 25 Percent Tariff
On December 21, 2018, the Office of the U.S. Trade Representative (USTR) announced its first round of product exclusions for U.S. imports from China receiving a 25 percent tariff increase on July 6, 2018, as part of the Section 301 process. In a December 28, 2018 Federal Register notice, the USTR announced that it…
U.S. Trade Representative Releases Summary of U.S.-Japan Trade Agreement Negotiations
On December 21, 2018, the U.S. Trade Representative (USTR) submitted to Congress and released to the public a summary of the Trump administration’s specific negotiating objectives for its U.S.-Japan Free Trade Agreement negotiations. This follows the USTR’s notification to Congress on October 16, 2018, of the Trump administration’s intention to enter into negotiations (see Trump…
Government Accountability Office to Review Section 232 National Security Tariff Exclusion Request Process
With growing congressional and business concerns over the backlog of Section 232 product exclusion requests and the lack of transparency in the review and decision-making processes of the Department of Commerce (Commerce), U.S. Senators Pat Toomey, Doug Jones and Thomas Carper submitted a letter November 26, 2018, to the Government Accountability Office (GAO) requesting a…
