Trump threatens tariffs on $267 billion in Chinese goods (not a typo).

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President Trump said on Friday (September 8th) he is ready to impose tariffs on $267 billion in goods from China, on top of the current $200+ billion plus in tariffs on goods. This past July, Trump imposed tariffs on $50 billion in Chinese imports in July and then an additional $200 billion in tariffs.

With the threatened $267 billion, Trump will have imposed or threatened to impose a total of over $500 billion in imports from China. To put this amount into perspective, the US imported only $505 billion in Chinese goods in 2017. In short, Trump is threatening tariffs on everything imported from China.

On September 6th, the U.S. Trade Representative finished accepting comments on the List 3 of tariffs that could impact up to $200 billion in Chinese goods.

More updates will be posted as they become available.

If you have any questions about how List 1, 2, 3 and upcoming proposed tariffs will impact your business – or how you can file comments or exclusions, contact experienced trade and customs attorney – David Hsu at 832.896.6288 or by email at dhsu@givensjohnston.com.

ZTE deal is good to go – House bill does not include Senate language “undoing” ZTE deal.

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Last Thursday, the US House of Representatives (“House”) passed its version of the defense appropriations bill, formally known as the the “John McCain National Defense Authorization Act for Fiscal Year 2019”, or “NDAA” for short.

The House bill passed on a 359-49 vote and authorized $675 billion in defense spending for next year. The final bill does include the Senate language prohibiting ZTE and Huawei from selling goods or services to the Pentagon.

More importantly, the final bill does not include Senate language that would have “undone” ZTE’s deal ($1 billion in fines, US government oversight, $400k in escrow, etc.) Despite bipartisan support in the Senate for amended language that would have prevented a deal with ZTE, the House did the right thing and removed this amendment from the final bill.

News of this final bill probably won’t make it to the news outlets, but this final bill is a win for President Trump and the administration – and will be the first time the US Government has had oversight of a large Chinese company.

With the ZTE deal saved and ZTE now eligible to buy hardware and software from US companies – companies such as Qualcomm, Lumentum, Oclaro, Broadcom, Intel, MACOM, Semtech, and other U.S.-based vendors in the ZTE supply chair are probably breathing a sigh of relief.

Check back for more ZTE news, if you have any questions about ZTE, trade or customs law, contact David Hsu at 832-896-6288 or by email at dhsu@givensjohnston.com.

The real reason Trump is working to reverse the 7 year ZTE ban? To help U.S. companies!

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President Trump via whitehouse.gov

I’ve read almost every ZTE-related article and no article has mentioned what I believe to be the real reason behind President Trump’s efforts to reverse or implement other alternatives to remove ZTE’s 7-year ban on purchasing U.S. hardware and software.

The real reason President Trump is trying to remove the ban is an effort to help US companies. US based companies such as Qualcomm, Intel, Broadcom and Oclaro supply hardware to ZTE. Software companies such as Alphabet supply and provide the Android mobile operating system and updates found on ZTE phones. A 7-year ban means the Google Play Appstore will lose sales on both apps and in-app purchases.

While Trump has faced backlash from Congress, I believe Trump’s efforts are in the interest of helping US companies and improving their stock prices.

ZTE estimated to lose $3.1 billion due to US sanctions (Bloomberg).

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Bloomberg news reported that China’s ZTE Corp is estimated to lose at least 20 billion yuan ($3.1 billion) due to Washington’s ban on U.S. firms hardware and software. The Bloomberg article cited unnamed sources.

Bloomberg also reports that ZTE is hopeful that the United States and China will be able to reach a deal that would remove the ban and has a plan in place allowing the telecoms firm to “swing idled factories into action within hours” of the ban being officially lifted.

Trump administration considering new tariffs on imported vehicles.

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Reuters reports the Trump administration may consider imposing new tariffs on imported vehicles based under Section 232 of the Trade Expansion Act of 1962.

A little bit of background – a section 232 investigation is conducted under the authority of the Trade Expansion Act of 1962, as amended and the purpose of a 232 investigation is to determine the effect of imports on the national security. Investigations may be initiated based on an application from an interested party, a request from the head of any department or agency, or may be self-initiated by the Secretary of Commerce.

Reuters reports the administration is currently considering tariffs of up to 25 percent for imported vehicles. As this was just announced, the plan is still not yet implemented and will receive much feedback from interest groups, foreign trading partners, domestic dealers of importer cars and anyone else involved in the import car business.

Check back for the latest news. If you have any questions about the current steel and aluminum tariffs initiated under section 232, contact experienced trade attorney – David Hsu at 832-896-6288 or by email at dhsu@givensjohnston.com.

Does President Trump want the US to become the 12th TPP member?

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According to a Daily Caller website article published today, President Trump asked Ambassador Robert Lighthizer and National Economic Council director Larry Kudlow to look into rejoining the trans-pacific partnership. The Daily Caller cites Senators Ben Sasse and Pat Roberts as the source of the news.

Sasse noted that Trump “deputized” Kudlow to “go get it done” and explore the possibility of rejoining TPP as the 12th party now that the other 11 nations have struck a deal. “It might be easier for us to join now, as opposed to long process,” he elaborated.

No other details are mentioned in the article but updates will be posted they are available.