About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 1 (June 21, 2019)

handle is hein.crs/govbaev0001 and id is 1 raw text is: Congressional aResearch Service Escalating U.S. Tariffs: Affected Trade Updated June 21, 2019 The trade practices of U.S. trading partners and the U.S. trade deficit are a focus of the Trump Administration. Citing these and other concerns, the President has imposed tariff increases under three U.S. laws: * (1) Section 201 of the Trade Act of 1974 on U.S. imports of washing machines and solar products; * (2) Section 232 of the Trade Expansion Act of 1962 on U.S. imports of steel and aluminum, and potentially motor vehicles and parts, uranium, and titanium sponge; and * (3) Section 301 of the Trade Act of 1974 on U.S. imports from China. In response to concerns over immigration, the President also recently proposed an additional 5% tariff on imports from Mexico under the International Emergency Economic Powers Act (IEEPA), but subsequently suspended the proposed tariffs indefinitely citing an agreement reached with Mexico. For a timeline of recent actions, see CRS Insight IN10943, Escalating US. Tariffs: Timeline. The Administration has stated that it is using existing and proposed tariffs for a range of purposes, including as leverage for broader trade negotiations with affected trading partners, such as Japan and the European Union (EU), and, as noted, to influence Mexico's immigration policies. The multiple tariff increases applied to date, ranging from 10% to 45%, affect approximately 10% of U.S. annual imports. This amounts to $267.5 billion of imports using 2018 annual data, but it should be noted that tariffs went into effect at various times in 2018 and 2019 (Figure 1). While the Administration has taken some steps to reduce the scale of imports affected by the tariffs (i.e., by exempting Canada and Mexico from the steel and aluminum duties and creating processes by which certain products may be excluded), the general trend is an escalation of tariff actions. The Administration has increased tariffs by 25% on roughly $250 billion of imports from China and has proposed a 25% tariff increase on the remaining roughly $300 billion (with some exceptions). In addition, President Trump declared U.S. motor vehicle imports a national security threat, particularly from the EU and Japan, granting him authority to impose tariff increases on such imports. The President also proposed an additional 5% to 25% tariff on all imports from Mexico (now indefinitely suspended). In total, these actions would potentially affect over $1 trillion of U.S. imports, or 40% of the annual total. While tariffs may benefit a limited number of import-competing firms, they also increase costs for downstream users of imported products (e.g., Ford estimates the metal tariffs cost the firm nearly $1 billion) and consumers Congressional Research Service https://crsreports.congress.gov IN10971 CRS INSIGHT Prepared for Members and Committees of Congress

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Already a HeinOnline Subscriber?

Log In

profiles profiles most