Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington:
In the week following the G20 summit meeting in Buenos Aires, there is more uncertainty than ever about the U.S.-China negotiations over tariffs.
Early in the week, President Trump moved the deadline for agreement between the U.S. and China closer. Instead of 90 days from Jan. 1 (March 31), the president announced that the deadline was 90 days from Dec. 2, or March 1, 2019. U.S. Trade Representative Robert Lighthizer yesterday stated his view that this was a “hard” deadline—no extensions of the negotiations, at least as far as he was concerned. Markets continue to be roiled over the news of a possible escalation of U.S.-China trade tensions.
As the tariffs continue, there were a few reports on the product exclusion process for the “Section 301” tariffs, which apply only to goods originating in China (that is not quite accurate, but close enough for present discussions). I took the opportunity to examine the latest USTR score sheet on tariff exclusions under Section 301. These are NOT to be confused with the steel and aluminum tariffs:
Tariff Group 1—These tariffs (25 percent on $34 billion of 2017) went into effect on July 6, 2018. Exclusion requests were due to be filed by Oct. 9.
The latest numbers from USTR on the status of exclusion requests:
- Total number of requests filed: 10,767
- Requests denied as of Dec. 7: 1,487
- Requests subject to public comment: 73
- Requests under substantive review: 8,572
- Requests referred to Customs and Border Protection for administrative feasibility: 635
- Requests approved: 0
Tariff Group 2—These tariffs (25 percent on $16 billion of 2017 trade value) went into effect on Aug. 23, 2018. Exclusion requests are due to be filed by Dec. 18. The latest numbers:
- Total number of requests filed as of Dec. 7: 908
- Requests denied as of Dec. 7: 0
- Requests still subject to public comment: 224
- Requests under substantive review: 684
- Requests referred to Customs and Border Protection for administrative feasibility: 0
- Requests approved: 0
To summarize—exclusion requests approved: 0; exclusion requests denied: 1,487.
Steel Product Exclusions—The data regarding steel product exclusions are difficult to summarize. Exclusions are being approved and denied. The precise criteria for approval are not being publicly revealed by the Bureau of Industry and Security at the Commerce Department. There have been reports that some approvals have come over the objections of domestic producers, but this has not been verified as far as I can tell. I continue to seek confirmation. Many requests are still pending that received no objections.
The Law Office of Lewis E. Leibowitz
1400 16th Street, N.W.
Washington, D.C. 20036
Phone: (202) 776-1142
Fax: (202) 861-2924
Cell: (202) 250-1551
Tim TriplettRead more from Tim Triplett
Latest in Steel Products
AISI: Raw Steel Production Shifts Down
US raw steel output took a downward turn during the week ending Sept. 30, according to data released by the American Iron and Steel Institute (AISI) on Monday, Oct. 2.
GM Lays Off Workers in Ohio and Indiana, Cites UAW Strike
General Motors has announced layoffs at its Parma Metal Center in Ohio and Marion Metal Center in Indiana as a result of the ongoing United Auto Workers (UAW) strike.
Rig Count Drops in the US, Inches Up in Canada
The number of active oil and gas drilling rigs in the US dropped this week while Canada’s count increased by one, said oilfield services company Baker Hughes in its weekly report.
UAW President To Announce New Strike Plans on Friday Morning
The United Auto Workers (UAW) president Shawn Fain is scheduled to make an announcement on Facebook Live, according to the UAW International Union's Facebook page.
Sheet Lead Times Mixed, Plate Plummets
While lead times for sheet again had mixed movements this week, those for plate collapsed, according to SMU’s most recent market survey.