INSIGHTi
Escalating U.S. Tariffs: Timeline
Updated September 6, 2019
The trade practices of U.S. trading partners and
thethe U.S. trade deficit
are a focus of the Trump
Administration. Citing these and other concerns, the President has imposed tariff increases under three
U.S. laws:
(1) Section 201 of the Trade Act of 1974 (Table 1) on U.S. imports of washing machines
and solar products;
(2) Section 232 of the Trade Expansion Act of 1962 (Table 2) on U.S. imports of steel
and aluminum, and potentially motor vehicles/parts and titanium sponge (the President
decided not to impose tariffs on uranium imports, after an investigation); and
(3) Section 301 of the Trade Act of 1974 (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 the President, based on agency investigations,
to take various actions, including imposing 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
19861986 for Section 232
, in 2001 for Section, in 2001 for
Section 301, and in 2002 for Section 201. The President also proposed increasing tariffs on imports from
Mexico using authorities delegated by Congress under the International Emergency Economic Powers Act
(IEEPA), but subsequently suspended the proposed tariffs citing an agreement reached with Mexico
( (Table 4). For information on retaliatory tariffs by U.S. trading partners, see CRS Insight IN10971,
Escalating U.S. Tariffs: Affected Trade
.
Congressional Research Service
https://crsreports.congress.gov
IN10943
CRS INSIGHT
Prepared for Members and
Committees of Congress
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.
U.S. Laws Related To Trump Administration Trade Actions
Section 201
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 substantial cause or threat of serious injury
to a U.S. industry.
Section 232 of the
Section 232 of the Trade Expansion Act of 1962—Allows the President to adjust imports if the Department of
Commerce finds certain products are imported in such quantities or under such circumstances as to
threaten to threaten to impair U.S.
national security
.
.
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 commitments or engaging in discriminatory or unreasonable
practices practices that burden or restrict U.S. commerce
.
.
International Emergency Economic Powers Act (IEEPA) of 1977—Allows the President to regulate the
importation of any property in which any foreign country or a national thereof has any interest if the President declares a
national emergency to deal with an unusual and extraordinary threat, which has its source in whole or substantial part outside
the United States, to the national security, foreign policy, or economy of the United States.
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
ChinaChina 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, which the United States has raised at the WTO.
Timeline and Status of U.S. Trade Actions
The tables below provide a timeline of key events related to each 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 or
value of imports and a higher tariff applies above that threshold.
Table 1. Section 201 Global Safeguard Investigations
Key Dates
Key Dates
|
5/17/2017—U.S. industry petition initiates ITC injury
investigation on solar cells/modules.
investigation on solar cells/modules.
6/5/2017—U.S. industry petition initiates ITC injury investigation on large residential
washers.
washers.
9/22/2017—ITC makes affirmative
solar cells/modules injury determination.
solar cells/modules injury determination.
10/5/2017—ITC makes affirmative large residential washers injury determination
.
.
11/13/2017—ITC submits report and recommended action on solar cells/modules to
President.
12/4/2017—ITC submits report and recommended action on large residential washers to
President.
1/23/2018—President proclaims actions on solar cells/modules and large residential washers
,
, effective February 7, 2018.
8/7/2019—ITC releases its mid-term review on the safeguard on large residential washers.
U.S. Import
Restriction
Solar
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
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 or large
residential washers, respectively. All other countries included.
Congressional Research Services
Current Status
3
Effective February 7, 2018.
|
Current Status
|
Effective February 7, 2018.
|
Table 2. Section 232 Steel, Aluminum, Auto, Uranium, and Titanium Sponge Investigations
Key Dates
U.S. Import
Restriction
Key Dates
|
4/2017—Commerce self-initiates investigations on U.S.
steelsteel (4/19) and
aluminumaluminum (4/26)
imports.
1/2018—Commerce submits
steelsteel (1/11) and
aluminumaluminum (1/17) investigation findings and
recommendations to President.
3/23/2018—United States imposes
steel and aluminumsteel and aluminum duties. Temporary exemptions to
May 1 in place for certain U.S. security partners (later extended to June 1).
4/30/2018—President permanently exempts South Korea from
steelsteel duties, based on a
quota arrangement.
5/23/2018—Commerce self-initiates investigation on U.S. motor vehicle and parts imports.
5/31/2018—President permanently exempts Argentina and Brazil from
steelsteel duties, and
Argentina from
aluminumaluminum duties, based on quota arrangements. Australia permanently
exempted from both duties without a quota.
7/18/2018—Commerce initiates investigation on U.S.
uraniumuranium imports based on industry
petition.
2/17/2019—Commerce submits motor vehicle and parts investigation findings and
recommendations to President.
3/4/2019—Commerce initiates investigation on U.S. titanium sponge imports based on
industry petition.
4/16/2019—Commerce submits uranium investigation findings and recommendations to
President.
5/17/2019—President
proclaimsproclaims motor vehicle and parts imports a national security threat
and directs USTR to negotiate with European Union (EU), Japan, and others to resolve
threat.
5/19/2019—President exempts Canada and Mexico from
steel and aluminum duties. Canada,
Mexicosteel and aluminum duties. Canada, Mexico, and United States announce process for reinstating tariffs should imports surge.
7/12/2019—President does not concur with Commerce findings that uranium imports
threaten to impair national security, but establishes U.S. Nuclear Fuel Working Group to
develop recommendations to revive domestic industry.
Aluminum
U.S. Import Restriction
|
Aluminum: 10% tariffs on specified list of aluminum imports
,, effective indefinitely.
Steel
Steel: 25% tariffs on specified list of steel imports
,, effective indefinitely.
Autos and Parts: No tariffs currently in effect, pending negotiations.
Countries Affected
Aluminum
Countries Affected
|
Aluminum: Argentina,* Australia, Canada, and Mexico exempted. All other countries included.
Steel
Steel: Argentina,* Australia, Brazil,* Canada, Mexico, and South Korea* exempted. All other
countries included.
Autos and Parts: EU, Japan, and other countries
“"deemed necessary
”" targeted for negotiations.
(*) Quantitative import restrictions imposed in place of tariffs.
Current Status
Current Status
|
Aluminum: Tariffs effective March 23, 2018.
Steel: Tariffs effective March 23, 2018.
Autos and Parts: National security threat declared. Negotiations to resolve threat are ongoing
with USTR to report to the President on their status within 180 days of May 17, 2019.
Uranium: President determined imports are not a national security threat.
Titanium Sponge: Investigation ongoing. Determination on national security threat pending.
(Retaliation also in effect, see CRS Insight IN10971, Escalating U.S. Tariffs: Affected Trade
.)
.)
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Table 3. Section 301 Investigation of China
’'s IP and Innovation Policies
Key Dates
Key Dates
|
8/14/2017—President directs USTR to consider investigation on China
’'s laws, policies,
practices, or actions affecting U.S. intellectual property and forced technology transfers.
3/22/2018—USTR releases Section 301 report and finds that China
’'s policies are
“ "unreasonable or discriminatory, and burden or restrict U.S. commerce.
”" President signs
memorandum memorandum proposing to
: (1) implement tariffs on certain Chinese imports; (2) initiate a
WTO dispute settlement case against China
’'s discriminatory technology licensing; and (3)
propose new investment restrictions on Chinese efforts to acquire sensitive U.S. technology.
4/6/2018—USTR publishes proposed list of products to be subject to additional 25% tariff.
5/19/2018—United States and China release
jointjoint statement as initial negotiations held to
resolve U.S. concerns.
5/29/2018—President announces U.S. plan to proceed with Section 301 actions, including
25% tariff on $50 billion of U.S. imports.
6/15/2018—USTR releases two-stage plan to impose 25% tariffs on approximately $50
billion of Chinese imports.
6/18/2018—President directs USTR to propose additional list of imports (stage 3) valued at
$200 billion to be subject to 10% tariff if China retaliates against Section 301 tariffs.
7/6/2018—United States imposes stage 1 tariffs (25% tariff on $34 billion of U.S. imports).
8/23/2018—United States imposes stage 2 tariffs (25% tariff on $16 billion of U.S. imports).
9/24/2018—In response to Chinese retaliatory tariffs, United States
imposesimposes stage 3 tariffs
(10% tariffs on $200 billion of U.S. imports initially set to increase to 25% on January 1,
2019).
12/1/2018—President announces new negotiations with China to resolve U.S. concerns and
declares stage 3 tariffs will remain at 10%.
5/5/2019—President
tweetstweets negotiations are moving too slowly, and plans to increase stage
3 tariffs to 25% and to prepare tariffs on remaining Chinese imports (stage 4).
5/10/2019—United States imposes stage 3 tariff increase to 25%.
5/17/2019—USTR publishes proposed stage 4
tarifftariff list (up to 25% tariff on $300 billion of
U.S. imports).
6/18/2019—President Trump
tweetstweets that he plans to meet with President Xi during G-20
and resume staff-level talks with China.
8/1/2019—President Trump tweets that China has not followed through with commitments
to buy U.S. agricultural products and announces a 10% tariff on remaining U.S. imports from
China (stage 4) will take effect September 1, 2019.
8/14/2019—USTR releases a two-part plan to impose 10% tariffs on approximately $300
billion of U.S. imports (stage 4). The first part (4A) will take effect on September 1, 2019; the
second part (4B) will take effect on December 15, 2019.
8/23/2019—
In response to Chinese retaliatory tariffs, President Trump
directsdirects USTR to
further increase tariffs on approximately $550 billion worth of U.S. imports from China by
5%, raising stage 1-3 tariffs to 30% on October 1, 2019, and stage 4 tariffs to 15% on their
effective dates (September 1, 2019 – 4A, December 15, 2019 – 4B).
9/1/2019
– —United States imposes stage 4A tariffs of 15%.
9/3/2019—USTR issues request for comments on proposed tariff increase from 25% to 30%
on stage 1-3 tariffs.
Congressional Research Services
U.S. Import
Restriction
Countries Affected
Current Status
5
on stage 1-3 tariffs.
9/11/2019—President Trump tweets that the United States will delay the proposed increase from 25% to 30% on stage 1-3 tariffs from October 1 to October 15.
U.S. Import Restriction
|
Stage 1—25% import tariff on 818 U.S. imports (approx. $34 billion).
Proposed increase to 30% (pending).
Stage 2—25% import tariff on
279279 U.S. imports (approx. $16 billion).
Proposed increase to 30% (pending).
Stage 3—
Stage 3—25% import tariff on
5,7335,733 U.S. imports (approx. $200 billion).
Proposed increase to 30% (pending).
Stage 4—
Stage 4—15% import tariff on 3,796 U.S. imports (approx. $300 billion);
4A4A covers 3,242
products and
4B4B covers 554 products
).
China.
.
|
Countries Affected
|
China.
|
Current Status
|
Stage 1—Effective July 6, 2018 (25%); proposed increase to take effect October
115, 2019 (30%).
Stage 2—Effective August 23, 2018 (25%); proposed increase to take effect October
115, 2019
(30%).
Stage 3—Effective September 24, 2018 (10%), May 10, 2019
, or June 15, 2019
, on products
exported from China before May 10 (25%); proposed increase to take effect October
115, 2019
(30%).
Stage 4—Effective September 1, 2019 (15%, stage 4A) and proposed effective December 15,
2019 (15%, stage 4B).
(Retaliation also in effect, see CRS Insight IN10971, Escalating U.S. Tariffs: Affected Trade
.)
.)
Table 4. Proposed Tariffs on Mexico under IEEPA
Key Dates
|
5/30/2019—President
announcesannounces intent to invoke IEEPA authorities to impose 5% tariff on
all imports from Mexico, starting June 10, 2019, and increasing by 5% monthly to 25% in
response to concerns over Mexico
’'s immigration policies affecting the United States.
6/7/2019—President
tweetstweets that the United States reached an agreement with Mexico (see
State Department announcement), suspending the proposed tariffs indefinitely.
Key Dates
U.S. Import
Restriction
Countries Affected
Current Status
U.S. Import Restriction
|
Proposed 5% import tariff on all U.S. imports from Mexico, increasing by 5% monthly to a
maximum of 25% (proposed, approx. $346.5 billion).
Mexico.
Suspended indefinitely.
Author Information
Brock R. Williams, Coordinator
Analyst in International Trade and Finance
Keigh E. Hammond
Research Librarian
Disclaimer
IN10943 · VERSION 15 · UPDATED
Congressional Research Services
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This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff
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IN10943 · VERSION 15 · UPDATED
maximum of 25% (proposed, approx. $346.5 billion).
|
Countries Affected
|
Mexico.
|
|
Current Status
|
Suspended indefinitely.
|