Chinese Tariff Update

With the U.S. China Trade War escalating, increased tariffs on imports and exports are affecting much more than just petroleum and steel. After determining that China was not fulfilling their end of the initial Section 301 agreement and using unfair trade practices, President Trump has increased tariffs for List III Chinese products from 10% to 25%, according to the Federal Register Notice (FRN) published May 9, 2019.

US Plans to End Preferential Trade Program for India and Turkey

In the latest push by the Trump administration to equalize what it considers to be unfair international trade relationships, the administration moved to end trade benefits to India and Turkey. On Monday, March 4, 2019, U.S. Trade Representative (“USTR”) Robert Lighthizer announced that India and Turkey would no longer qualify under the Generalized System of Preferences (“GSP”) program. This announcement comes under the direction of President Trump, who indicated India’s removal is due to failure to provide assurances that it will grant equitable and reasonable access to its markets in numerous sectors. Turkey’s termination follows a USTR review finding the country is adequately economically developed and requires no preferential market access to the U.S.

Court of International Trade Orders Treasury and CBP to Issue TFTEA Drawback Final Regulations

On October 12, Judge Restani of the Court of International Trade (“CIT”) issued Slip Opinion 18-138 in the case of Tabacos de Wilson, et al v. Mnuchin et al. This Opinion also contains an Order that on or before December 17, 2018, Treasury and CBP shall file the final rule for Modernized Drawback with the Office of the Federal Register. This action by the Judiciary is a significant validation of Charter’s position that Treasury and CBP had violated the clear intent of Congress by withholding these regulations.

The Petroleum Industry’s Sticky Situation: Section 232 Steel and Aluminum tariffs, Section 301 Trump tariffs, and the US China Trade War

A U.S. – China trade war was sparked on March 23, 2018, when President Trump imposed worldwide tariffs on steel and aluminum imports in the interest of “safeguarding national security” and protecting U.S. steel jobs. The Section 232 steel and aluminum tariff increased to 25% for steel and 10% for aluminum. Though the goal is to put American jobs first, the new tariffs may have mixed results for U.S. petroleum and other industries.