PC WIRE STRAND AVAILABILITY AT RISK

Guest article authored by David Craven, an expert on AD/CVD matters and Martindale-Hubbell A-V rated attorney, who serves Diaz Trade Law clients in an Of Counsel capacity.

Do you use, or are you planning to use PC Wire Strand?

PC Wire Strand is a critical raw material used in the production of pre-stressed concrete. The availability of such a product is now at serious risk, which would make producing pre-stressed concrete difficult and expensive. A trade action has just been filed,  seeking to impose anti-dumping and countervailing duties on imports from fifteen countries (Argentina, Columbia, Egypt, Indonesia, Italy, Malaysia, Netherlands, Saudi Arabia, South Africa, Spain, Taiwan, Tunisia, Turkey, Ukraine and the United Arab Emirates). This investigation is being conducted in parallel by two separate Federal Agencies; The International Trade Commission which decides whether the U.S. industry is being injured by the imports and the U.S. Department of Commerce which decides the amount of any duties.

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BREAKING NEWS: China Trade War Update – List 4A Reduced to 7.5% and List 4B will NOT become effective on 12/15

We have been monitoring for a news update on whether U.S. & CHINA reached a “PHASE ONE DEAL” since we last wrote about it on October 11, 2019. Two months later, the USTR published a press release confirming that the United States and China have reached an historic and enforceable agreement on a Phase One trade deal and President Trump tweeted the announcement noting that this “is an amazing deal for all”.TP Tweet

What does the “Phase One Deal” Include?

  • The deal requires structural reforms and other changes to China’s economic and trade regime in the areas of intellectual property, technology transfer, agriculture, financial services, and currency and foreign exchange.
  • The Phase One agreement also includes a commitment by China that it will make substantial additional purchases of U.S. goods and services in the coming years.
  • Importantly, the agreement establishes a strong dispute resolution system that ensures prompt and effective implementation and enforcement.
  • The United States has agreed to modify its Section 301 tariff actions in a significant way.

What is the Impact on Section 301 Tariffs?

  • Lists 1, 2, 3 will continue to be subject to 25% tariffs
    • Approximately $250 billion of Chinese imports
  • List 4A has been reduced to 7.5% from 15%
    • Approximately $120 billion of Chinese imports
    • The effective date for the reduced tariff has NOT been announced.
  • List 4B will not become effective on December 15.

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TOP 5 Strategies to Mitigate the Impact of Tariffs

Many importers, exporters, and international businesses alike may be unaware that avenues exist to ensure that their products remain unabated by protectionist trade policies (think China tariffs).

This blog provides an easy reference overview of five (5) proven and legitimate options for duty-saving opportunities.

We recommend U.S. importers, exporters, and manufacturers to consider these five (5) options as they apply to all products from virtually any country subjected to a tariff, including Section 201 tariffs for solar systems, Section 232 tariffs for aluminum and steel, and the infamous Section 301 Tariffs in place for Chinese originating goods and violations of trade agreements, as well as acts, policies or practices that are unjustifiable,  unreasonable, or discriminatory and that burden or restrict U.S. commerce.

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List 4 Split into Two HTS Lists

USTRAs published by the USTR TODAY: USTR Announces Next Steps on Proposed 10 Percent Tariff on Imports from China

The United States Trade Representative (USTR) today announced the next steps in the process of imposing an additional tariff of 10 percent on approximately $300 billion of Chinese imports.

On May 17, 2019, USTR published a list of products imported from China that would be potentially subject to an additional 10 percent tariff.  This new tariff will go into effect on September 1 as announced by President Trump on August 1.

Certain products are being removed from the tariff list based on health, safety, national security and other factors and will not face additional tariffs of 10 percent.

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Trump to Impose Tariffs on All Imported Goods From Mexico

As a result of the immigration crisis intensifying at the border of the United States and Mexico, President Trump announced a five (5) percent tariff to be levied on all goods from Mexico starting June 10th. The tariffs are set to continue to increase by five percent each month up to twenty-five percent. The tariffs will permanently remain at the 25 percent level unless and until Mexico substantially stops the illegal inflow of aliens coming through its territory.

The effective date of the imposition of the additional tariffs are as follows:

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