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Concerns over trading partner trade practices The trade practices of U.S. trading partners and the U.S. trade deficit have beenare a focus of the Trump Administration. Citing these concerns and othersand other concerns, the President has imposed tariffs under three U.S. laws and authorities that allow the Administration to unilaterally impose trade restrictionstake such action: (1) Section 201 (Table 1) on U.S. imports of washing machines and solar products; (2) Section 232 (Table 2) on U.S. imports of steel and aluminum, and potentially autos and uranium,, uranium, and titanium sponge; and (3) Section 301 (Table 3) on U.S. imports from China. Congress delegated aspects of its constitutional authority to regulate foreign commerce to the President through these trade laws. These statutory authorities allow presidential action, based on agency investigations and other criteria, to impose, to take various actions, including import restrictions to address specific concerns (see text box). They have been used infrequently in the past two decades, in part due to the 1995 creation of the World Trade Organization (WTO) and its enforceable dispute settlement system. Prior to this Administration, U.S. import restrictions were last imposed under these trade laws in 19821986 for Section 232, in 2001 for Section 301, and in 2002 for Section 201. For more on the impact of these actionsinformation on retaliatory tariffs by U.S. trading partners, see CRS Insight IN10971, Escalating Tariffs: Potential Impacts.
U.S. Laws Related To Trump Administration Trade Actions Section 201 of the Trade Act of 1974—Allows the President to impose temporary duties and other trade measures if the U.S. International Trade Commission (ITC) determines a surge in imports is a substantial cause or threat of serious injury to a U.S. industry. Section 232 of the Trade Expansion Act of 1962—Allows the President to Section 301 of the Trade Act of 1974—Allows the United States Trade Representative (USTR) to suspend trade agreement concessions or impose import restrictions if it determines a U.S. trading partner is violating trade agreement commitments or engaging in discriminatory or unreasonable practices that burden or restrict U.S. commerce. |
Increasing U.S. tariffs or imposing other import restrictions through these laws potentially opens the United States to complaints that it is violating its WTO and free trade agreement (FTA) commitments. Several U.S. trading partners, including Canada, China, Mexico,China and the European Union, have initiated dispute settlement proceedings and imposed retaliatory tariffs in response. The retaliatory actions also raise questions with regard to their adherence to WTO commitments.
The tables below provide a timeline of key events related to each U.S. trade action. In addition to tariffs, the President has imposed quotas, or quantitative limits on U.S. imports of certain goods from specified countries, as well as tariff-rate quotas (TRQs), for which one tariff applies up to a specific quantity of imports and a higher tariff applies above that threshold.
Key Dates |
|
U.S. Import Restriction |
Solar Cells: 4-year TRQ with 30% above quota tariff, descending 5% annually. Solar Modules: 4-year 30% tariff, descending 5% annually. Large Residential Washers: 3-year TRQ, 20% in quota tariff descending 2% annually, 50% above quota tariff descending 5% annually. Large Residential Washer Parts: 3-year TRQ, 50% above quota tariff, descending 5% annually. |
Countries Affected |
Canada excluded from the duties on washers. Certain developing countries excluded if they account for less than 3% individually or 9% collectively of U.S. imports of solar cells or large residential washers, respectively. All other countries included. |
Current Status |
Effective February 7, 2018. |
Table 2. Section 232 Steel and Aluminum, Aluminum, Auto, Uranium, and Titanium Sponge Investigations
Key Dates |
|
|
U.S. Import Restriction |
Aluminum: 10% tariffs on specified list of aluminum imports, effective indefinitely. Steel: 25% tariffs on specified list of steel imports, effective indefinitely.
Autos and Parts: No tariffs currently in effect, pending negotiations. Countries Affected Aluminum: Argentina,* Australia, Canada, and Mexico exempted. All other countries included. | |
Countries Affected |
Aluminum: Australia and Argentina* permanently exempted. Steel: Australia, Argentina*, Brazil*, and South Korea* permanently exempted. All other countries included. exempted. All other countries included.
Autos and Parts: EU, Japan, and other countries "deemed necessary" targeted for negotiations. |
|
Current Status |
Steel: Tariffs effective March 23, 2018. Autos and Parts: National security threat declared. Negotiations to resolve threat ongoing. Uranium: Investigation completed. Determination on national security threat pending. (Retaliation also in effect, see CRS Insight IN10971, Escalating Tariffs: Potential Impacts.) |
Key Dates |
| (stage 3) valued at $200 billion to be subject to10% tariff if China retaliates against Section 301 tariffs.
U.S. Import Restriction |
Stage 1—25% import tariff on 818 U.S. imports (final, approx. $34 billion) .Stage 2—25% import tariff on 279 U.S. imports (final, approx. $16 billion). Stage 3—10% import tariff |
Countries Affected |
China |
Current Status |
Stage 1—Effective Stage 2—Effective August 23, 2018. Stage 3—Effective September 24, 2018 (10%), May 10, 2019 (25%). Stage 4—Proposed. (Retaliation also in effect, see CRS Insight IN10971, Escalating Tariffs: Potential Impacts.) |