Several Republican senators told reporters at the Capitol May 11 that there's an appetite to punish China because of its lack of transparency on the spread of the novel coronavirus. President Donald Trump on April 30 floated using tariffs on Chinese imports to retaliate for the suppression of coronavirus details (see 2005010064), but has backed away from such talk more recently (see 2005070039). Assistant Majority Leader Sen. John Cornyn, R-Texas, said, “Well it seems like our relationship with China has just continued to deteriorate.” He added that it appears that China hid information in the early weeks of the outbreak in order to stockpile protective gear, “and otherwise protect themselves at the expense of the rest of the world.”
Sen. Josh Hawley, R-Mo., announced that he's introducing a joint resolution that the U.S. should withdraw from the World Trade Organization. Such a resolution, if it were to pass, would not be binding.
Fifteen House Republicans, led by Rep. Michael McCaul of Texas, will serve on a task force evaluating China's economic threat, its efforts to gain a technology advantage, and the origin of the new coronavirus that causes COVID-19, House Minority Leader Kevin McCarthy said May 7.
Politicians whose constituents work at electrical steel mills hailed the news that electrical steel cores and laminations used to make transformers, as well as transformers and transformer regulators, are going to be subject to a Section 232 investigation (see 2005040059). Three of the four senators from Pennsylvania and Ohio, and a Pennsylvania congressman, lauded the administration for considering further protection for AK Steel, which was acquired by Cleveland-Cliffs in March. Once imported electrical steel was subject to 25% tariffs, AK Steel said imports of downstream products made from this kind of steel increased.
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, when asked about a legislative proposal that would prevent tariff payments to customs brokers from being clawed back in bankruptcy, said, “I’ve never given it any thought.” Grassley, who was speaking on a phone call with reporters May 5, didn't know that customs brokers face this problem when a client declares bankruptcy and the broker serves as a pass-through agent for tariffs. “It seems to me that in most bankruptcies the government’s first in line to recapture what the government is owed,” he said. The National Customs Brokers& Forwarders Association of America has been trying to get the proposal to be included in the next round of COVID-19 relief (see 2003200030), and International Trade Today asked Grassley whether he would support its inclusion.
New Jersey Democratic Rep. Bill Pascrell, who voted against the U.S.-Mexico-Canada Agreement, issued a statement complaining that the administration has not yet named the members of the forced labor enforcement task force, which was supposed to be formed by 90 days after the implementing bill's passage. The task force is meant to discuss active Withhold and Release Orders, investigations that could lead to WROs, petitions for investigations and forced labor enforcement priorities.
The Congressional Research Service, in a May 1 report, noted that Congress may want to turn its attention to the U.S.-Kenya negotiations not only because of the free trade agreement's potential economic effects, but also because of mandates in the African Growth and Opportunity Act (AGOA) -- Kenya is the second-largest beneficiary of AGOA when oil is excluded.
Washington state's senators and Rep. Suzan DelBene and Rep. Rick Larsen, both New Democrats, asked President Donald Trump to fix the Section 232 exclusion system, blaming it for 700 layoffs in Ferndale, Washington, at an Alcoa plant. They said in a letter, released May 1, “It is evident that your Administration’s approach to Chinese overcapacity so far has not had its intended effect, and we urge you to prioritize resolving this issue.” They pointed to The Aluminum Association's April 22 letter (see 2004240036) to Commerce Secretary Wilbur Ross as a guide to follow. They also complained that the trade deal with China does nothing to address overcapacity and state-owned enterprises.
In a detailed five-page letter, the fashion industry is asking for broader application of government subsidies to businesses, flexibility in trade regulations, tax breaks, and billions of dollars in funding for day care facilities.
Rep. Kurt Schrader, D-Ore., is soliciting support for a letter to House Speaker Nancy Pelosi that asks that ports be offered financial support in the next bill responding to the COVID-19 public health emergency. He has already convinced 63 other House members to join the letter, and one of the fellow lead writers is Rep. Randy Weber, R-Texas. “Most important is that the next package disperses aid to ports of all sizes, both large and small alike. Our solution must make sure that all our ports receive the resources they need. Small ports are often the lifeblood of communities and are the hardest hit by these events,” they plan to say. “Without this aid, industries served by ports will not be able to offer essential services to get our communities back into shape once we start to recover from this crisis.”