An attempt to rein in the president on Section 232 tariffs has been reintroduced as a free-standing bill. Sen. Michael Bennet, D-Colo., introduced a bill June 21 that would end the steel and aluminum tariffs on the European Union, Canada and Mexico. It would also require that the administration consult with Congress before imposing any tariffs on the grounds of national security. Another bill introduced earlier this month by Sen. Bob Corker, R-Tenn., sought to require a vote from Congress before Section 232 tariff action could be taken. Corker's bill has stalled because revenue bills must start in the House of Representatives (see 1806130012).
Toy companies met with Senate Finance Committee staffers, CBP, the Consumer Product Safety Commission and representatives from Alibaba and Amazon June 14 in Washington to discuss intellectual property issues, the Toy Association said in a news release. "Participating toy companies spoke about their experiences tackling infringing toys sold online and discussed possible solutions to improve toy safety and IP protection on e-commerce platforms," the release said. The Senate Finance Committee is taking a close look at e-commerce platforms and sales of counterfeit goods (see 1805300029)
The House of Representatives on June 13 passed the Stop Illicit Drug Importation Act, which adds to the Food and Drug Administration's authority to detain, refuse and destroy imported drugs. The legislation says the provisions would not apply if "an electronic import entry for such article is submitted using an authorized electronic data interchange system" and if "such article is designated in such system as a drug, device, dietary supplement, or other product" in the Federal Food, Drug, and Cosmetic Act.
The Senate Finance Committee will question Commerce Secretary Wilbur Ross on June 20 about the effects of Section 232 aluminum and steel tariffs and the investigation into auto and auto part imports, which President Donald Trump says are a threat to national security. In announcing the hearing, Chairman Orrin Hatch, R-Utah, said, “While we share a common goal of pursuing a pro-growth, pro-America agenda, I have made no secret my concerns with the administration’s use of 232 tariffs." He said the cost to manufacturers undermines the positive effects of tax reform. "I remain committed to working with this administration to push trade policies that open up markets for American goods and increase U.S. competitiveness,” he said.
The entire congressional delegation from Washington state sent a letter to the U.S. trade representative, asking him to negotiate a solution with countries facing Section 232 steel and aluminum tariffs, because retaliatory tariffs on apples, cherries, pears and potatoes will cost the state's farmers tens of millions of dollars. The letter talks about cherry sales in China, apple sales in India, China and Mexico, and notes, "With cherry harvest beginning in the Pacific Northwest, time is of the essence for our growers."
Citing the inflationary effect of antidumping and countervailing duties on softwood lumber, Reps. Kenny Marchant, R-Texas, and Brian Higgins, D-N.Y., led a letter asking that the administration reopen discussions with Canada, with the goal of reaching a negotiated agreement on softwood lumber imports. The two countries operated under the most recent agreement from 2006 to 2015. Canadians have said they're willing to agree to a new agreement with an export cap, but, if demand is high, a mechanism to lift the cap (see 1708240031). The June 12 letter to Commerce Secretary Wilbur Ross and U.S. Trade Representative Robert Lighthizer said the antidumping and countervailing duties strain the relationship with one of the country's closest allies and cause "unnecessary cost increases" for home builders. In a press release announcing the letter, Marchant cites a National Association of Home Builders estimate that the duties add $7,000 to the cost of building a new house.
An amendment aimed at requiring a vote from Congress before Section 232 tariffs can be imposed was blocked in the Senate on June 12. Sen. Bob Corker , R-Tenn., said he understood that all the powers in the Senate were arrayed against his effort receiving a vote. His proposal would have not only required that Congress approve any tariffs against auto parts and autos based on national security grounds, but also would have been retroactive, so that Congress could have rolled back the 232 tariffs on steel and aluminum (see 1806060018). The amendment was blocked on a procedural technicality -- that bills that affect revenue must start in the House of Representatives -- but Corker said on the floor of the Senate it was clear that wasn't the true reason. He said that Republican senators were fearful of upsetting the president. He said what he's been told since he proposed attaching his amendment to the defense authorization bill was: "Don't poke the bear!"
The leaders of the Senate Finance Committee spoke about their differences with the Trump administration on trade before questioning nominees for appointed positions in the Commerce Department and on the Court of International Trade. Ranking member Ron Wyden, D-Ore., who spoke before the nomination hearing June 12 about the administration's approach to its allies and trade, said he agrees "that NAFTA needs renegotiating. I agree that the U.S. needs to step up with tough action against China’s abusive trade practices. But after a year and a half of work, the Trump Administration has managed to unite our traditional allies with China against us. In many ways, China is getting away with its cheating scot-free. Instead of creating American jobs, this trade policy is creating chaos," he said, according to prepared remarks.
If the Securing the International Mail Against Opioids Act of 2018 becomes law, the Government Accountability Office will evaluate how effective the use of advance electronic data has been in stopping the flow of fentanyl and other opioid packages, and it will assess "whether the detection of illicit synthetic opioids in the international mail would be improved by requiring the Postal Service to serve as the consignee for international mail shipments containing goods; or designating a customs broker to act as an importer of record for international mail shipments containing goods."
A bipartisan bill to end cash deposit collections on newsprint and that would delay antidumping and countervailing duty final determinations in those cases was introduced in the House of Representatives by Rep. Kristi Noem, R-S.D., and Rep. Charlie Crist, D-Fla. Both this bill and a version introduced in May in the Senate are called the PRINT Act, for Protecting Rational Incentives in Newsprint Trade Act of 2018. The top cash deposit rate on a company for the countervailing duty case is 9.93% (see 1801120008); most Canadian exports face a 22.16% antidumping cash deposit (see 1803160046).