Year 2 of the Trump administration continued the predicted trend of unpredictability in the trade area, with new restrictions, tariffs, edge-of-your-seat results of trade renegotiations, and an administration that set off a trade war with China as well as with our most reliable trading partners.
Starting in March with increased duties on steel and aluminum on alleged grounds of “national security,” followed by the barrage of increased duties on Chinese imports under “Section 301” to primarily to combat Chinese unfair trade practices in the technology sector, it seemed to be almost continuous daily “whiplash” of news on the trade front.
Importers have been scurrying to rethink their sourcing arrangements and supply chains in an attempt to minimize the devastating impact of sudden duty increases on their bottom lines. An initial total exemption for products that incorporated US-made components was quickly reversed.
Procedures to apply for product exemptions from these additional duties have yet to yield any positive results.
An agreement between China and the US at the G-20 meeting allows the “List 3” tariffs, which were initially set to increase Jan. 1, to be placed on the table while the countries negotiate. Those imports threatened the balance of imports from China not currently subject to increased tariffs, including consumer products such as apparel, footwear and toys that will only affect American consumers.
Customs enforcement actions remain a priority — particularly against various “techniques” being offered by Chinese suppliers to attempt to evade the China duties — as well as increase in seizures for alleged intellectual property violations. Trade lawyers can assist importers in legally navigating and mitigating all these trade challenges.