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1 1 (June 5, 2019)

handle is hein.crs/govzyj0001 and id is 1 raw text is: Congressional _____ ~Research Service hnforming the IegIsative debate since 1914 Escalating U.S. Tariffs: Affected Trade Updated June 5, 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. Most recently, in response to concerns over immigration, the President has also proposed an additional 5% tariff on imports from Mexico under the International Emergency Economic Powers Act (IEEPA), set to take effect June 10, 2019, and increase by 5% monthly up to 25%. For a timeline of recent actions, see CRS Insight IN 10943, Escalating 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% ($267.5 billion) of U.S. annual imports (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 recently increased tariffs from 10% to 25% on approximately $200 billion of U.S. imports from China. It also proposed a 25% tariff on nearly all remaining imports from China, in addition to the newly proposed 5% to 25% tariffs on imports from Mexico. 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. 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 (e.g., research by economists from the New York Federal Reserve estimates the tariffs in effect in 2018 cost the average household $414, which could grow to $831 with the recent 15% Congressional Research Service https://crsreports.congress.gov IN10971 CRS INSIGHT Prepared for Members and Committees of Congress

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