June 22, 2018
As expected the EU announced $3.24 billion in tariffs on imports from the U.S. in retaliation for the steel and aluminum tariffs being assessed on EU origin product. The European tariffs become effective June 22, 2018.
The Commerce Department also has reported that it has granted requests to 42 U.S. companies to exclude tariffs on products they import to the U.S. Fifty-six companies have had their requests for exclusion denied. The Commerce Department has received over 20,000 requests for exclusions, more than three times what was anticipated when tariffs were first announced. Commerce originally indicated it would process exclusion requests in 60 days but so far less than 1 percent of the requests have been acted upon.
Also, a further investigation under Section 232 (to determine if national security is affected) is underway to consider the imposition of tariffs on the automotive sector. The economic impact of the automotive industry is four times greater than raw steel and aluminum according to comments made by Senator Orin Hatch while questioning Commerce Secretary Wilbur Ross.
Earlier this week the Administration made comments in response to China's announced $50 billion tariffs in response to recent U.S. tariff announcements on Chinese imports. It was made clear that the U.S. would consider much greater and broad tariffs on goods that would potentially cover the majority of the $500 billion of merchandise we import from China.
The situation continues to be fluid as you all know. We will continue to monitor this and keep you advised.