Trump impeachment inquiry delays USMCA ratification.

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This past Wednesday, the Trump administration warned the impeachment inquiry would likely result in no congressional action on the United States-Mexico-Canada trade deal (USMCA).

While the US Trade Representative Robert Lighthizer believed the deal would pass the House, Trump was less confident and doesn’t believe the Houston majority leader will set a vote to pass the trade agreement.

Last year, Canada, the US and Mexico reached an agreement to replace the North American Free Trade Agreement with the final step being ratification among the three members. Canada and Mexico have already urged the US to ratify the agreement sooner rather than later.

If you have any questions how the new USMCA may impact your business, contact experienced trade attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

US to tax goods from Europe – airplanes, agriculture and industrial products.

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Earlier this week, President Trump’s administration announced the imposition of tariffs on European goods covering a wide range of goods, from aircraft, to wine, cheese, olive oil and many more items starting October 18th.

The move comes after the World Trade Organization granted the US permission to tax European exports annually to the amount of $7.5 billion in response a US complaint over subsidies given to the European plane manufacturer Airbus. The $7.5 billion in tariffs is annually and continues until an agreement is reached.

The list of goods subject to tariffs will place a 25% tariff on Parmesan cheese, coffee, mussels, single malt whiskeys and other agricultural goods from Europe in addition to a 10% tariff on European aircraft.

If you have any questions how this may impact your business, contact experienced trade and customs attorney David Hsu by phone/text at 832-896-6288, or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

 

 

 

Trump delays List 4 tariffs until December 14th.

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The Trump administration has postponed the levying of 10% tariffs on List 4 goods covering $300 billion in imports from China until December 15th. The initial date of September 1st was postponed after reports of a phone call with Beijing.

A new round of trade talks will be held in September after this month’s talks did not result in a trade deal.

There is still time to lower your import risk, if you would like solutions to lowering the duties you need to pay, contact experienced trade attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

Trump administration bars federal agencies from buying ZTE or Huawei technology.

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Last year, Congress passed the defense spending bill that included a provision barring all federal agencies from purchasing Huawei and ZTE equipment due to concerns Chinese technology contained within those devices may pose a national security concern.
One year later, the new prohibition will take effect August 13th – this prohibition also includes Chinese companies Hytera and Hikvision. Next year, federal conttractors will be subject to this prohibition, although waivers will be available to contractors on a case-by-case basis.
Huawei has challenged the ban in court but no decision has been made.

Trump threatens tariffs on $300 billion of Chinese imports on September 1st.

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Official portrait of President Donald J. Trump, Friday, October 6, 2017. (Official White House photo by Shealah Craighead)

As you are aware, yesterday, President Trump imposed a September 1st deadline for an additional $300 billion in tariffs on Chinese goods if a trade deal is not reached.

The $300 billion covers the remaining items not previously listed in Lists 1, 2 or 3. The List 3 exclusion process is currently underway and Commerce recently published lists of additional exclusion requests that have been granted in Lists 1 and 2.

Here is a summary of what has been reported by various news outlets:

  1. There has been no progress in trade talks with China this week in Shanghai between Treasury Secretary Steven Mnuchin and US Trade Representative Robert Lighthizer and their Chinese counterparts.
  2. Trump believes China is moving too slow in working on a deal and set September 1st as a deadline to impose duties on the remaining imports of goods from China.
  3. The new duties if imposed in September will be at 10%. We have seen goods in List 1, 2, 3 have tariffs as high as 25%.
  4. Some news outlets report that China may be stalling to sign a trade deal until after the 2020 election.
  5. September 1st would mark an end to a “truce” between the two countries.
  6. China has threatened to respond with their own retaliatory tariffs if Trump goes through with the September 1st deadline.
  7. Trump claims China has not gone through with their promise to buy more agricultural products from the US in large quantities.
  8. Trump also claims China would curtail the shipments of Fentanyl to the United States, but has not and the shipments continue to harm Americans.
  9. According to reports, Chinese negotiators want Trump to remove the tariffs on $250 billion in Chinese goods before they will purchase US agricultural goods and comply with their other concessions.
  10. Trump believes the US economy is strong as unemployment has hit a 50-year low, a position that will enable the US to outlast China in the event of a prolonged trade war.
  11. Analysts claim further duties will only hurt Americans in increasing the prices of goods.
  12. Shipping companies and importers are trying to get as many shipments into the US prior to the September 1st deadline.

Will post more news as they become available. If you have any questions how the 301 duties will impact your business, contact David Hsu at: dh@gjatradelaw.com, attorney.dave@yahoo.com or by phone/text at 832-896-6288.

Trump: Apple goods from China will be subject to duties.

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According to the AFP, earlier today, President Donald Trump warned he would deny Apple’s “exclusion request” for tariff exemptions on device components imported from China.

Specifically, President Donald Trump wrote on Twitter:

“Apple will not be given Tariff wavers, or relief, for Mac Pro parts that are made in China. Make them in the USA, no Tariffs!”

Trump’s message on Twitter is in response to Apple’s filing of an “exclusion request” with the U.S. trade representative. Apple claims that some parts of the Mac Pro desktop being sold at $6,000 can only be sourced in China and therefore not be subject to 301 duties.

If your imported goods from China are subject to the current “List 3” duties and you would like to file an exemption, contact experienced trade attorney David Hsu at dh@gjatradelaw.com, attorney.dave@yahoo.com or by phone/text at: 832-896-6288.

Trump saves Huawei.

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Official portrait of President Donald J. Trump, Friday, October 6, 2017. (Official White House photo by Shealah Craighead)

Well, not exactly Huawei, but at least Huawei’s smartphone division. After backtracking on sanctions, Huawei’s shipments for 2019 are estimated to be 260 million units and more. This new forecast even beats the pre entity list placement forecast of 250 million units.

According to the Bloomberg article cited several reasons for increased smartphone sales: (1) inclusion of Google play store apps for future smart phones, and (2) increased Chinese domestic sales of Huawei devices that may result from consumers supporting a domestic company.

Ultimately, Trump’s reversal of the Huawei ban (for devices not a threat to national security) has ultimately saved Huawei and their smartphone sales. Over the past two months, there have been multiple reports of canceled phones and laptops (new Matebook); we can expect to see those new devices in the near future as a direct impact of President Trump’s reversal at the G20 summit.

If you export any goods that may contain Huawei parts or components, contact experienced export compliance attorney David Hsu at 832-896-6288 or by email at dh@gjatradelaw.com, attorney.dave@yahoo.com.

Trump rallies in Wisconsin for USCMA support.

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According to the Associated Press, President Donald Trump had a rally in Wisconsin to promote his trade deal with Mexico and Canada, known as the United States-Mexico-Canada Agreement (USMCA). Trump was the first Republican to win Wisconsin since Ronald Reagan in 1984 and recent polling indicates Wisconsin is another battleground state in 2020.

Wisonsin exports $31 million worth of goods to Canada and $15.2 million worth of goods to Mexico; importing $15.5 million in goods from Canada and $9.3 million in goods from Mexico.

The USMCA will likely be ratified in Mexico and Canada, but Congress has not yet supported ratification. Democrat Congress members want strong labor and environmental protections. The AP article said a vote was likely to be held in September at the earliest.

If you have any questions how the new USMCA will impact  your business, contact experienced trade attorney David Hsu at 832-896-6288 or by email at dh@gjatradelaw.com, attorney.dave@yahoo.com.

Breaking news – Trump allows US companies to sell to Huawei.

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Official portrait of President Donald J. Trump, Friday, October 6, 2017. (Official White House photo by Shealah Craighead)

In comments at the G20 Summit, Trump was quoted as saying:

“One of the things I will allow, however, is, a lot of people are surprised we send and we sell to Huawei a tremendous amount of product that goes into the various things that they make. And I said that that’s okay, that we will keep selling that product. These are American companies… that make product and that’s very complex, by the way, and highly scientific. And in some cases we’re the ones that do it, we’re the only ones that do it. What we’ve done in Silicon Valley is incredible, actually and nobody has been able to compete with it, and I’ve agreed and pretty easily, I’ve agreed to allow them to continue to sell that product. So American companies will continue and they were having a problem, the companies were not exactly happy that they couldn’t sell because they had nothing to do with whatever it was potentially happening with respect to Huawei, so I did do that.”

Based off Trump’s comments, hardware components from US companies such as Intel and Micron can continue to sell to Huawei.

Will post more official verification as soon as it becomes available.

If you have questions about the Huawei BIS entity ban, contact experienced export compliance attorney David Hsu by phone/text at 832-896-6288 or by email at dh@gjatradelaw.com, attorney.dave@yahoo.com.

US China Truce (for now)?

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Official portrait of President Donald J. Trump, Friday, October 6, 2017. (Official White House photo by Shealah Craighead)

At this week’s G20 meeting, President Donald Trump and China’s Xi Jinping agreed to a temporary truce and restart trade talks. This means the current U.S. tariffs will remain in place, but the trade penalties proposed for Section 301, List 4 will be put on hold pending an outcome of what will be the 12th round of trade talks.

List 4 covers approximately $300 billion in goods from China, and if in place, Lists 1-4 effectively cover every import from China.

However, both sides still differ on one item that may prevent a long term solution – trade secrets.

In response, China has also placed tariffs on $110 billion in US goods, mostly focusing on agricultural imports. Some believe the tariffs against farm products (and Trump supporters) are aimed towards pressuring Trump as he heads into the general election next year.

If you have goods under List 3 and want to file an exclusion, contact David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.