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Volume X, Number 194

July 10, 2020

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July 09, 2020

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U.S. May Impose Additional Tariffs on EU Products

On June 26, 2020, the Office of the U.S. Trade Representative announced that it is considering modifying the list of European Union products subject to additional tariffs upon importation into the United States and increasing the tariff rate up to 100 percent. The USTR is accepting comments whether specific products should be either added to or deleted from the lists and whether the rate on specific products should be increased. Comments are due by July 26, 2020.

The current rate of additional tariffs is 25% on EU products and 15% on aircraft and aircraft parts. Products of the United Kingdom are also included. In addition to aircraft, the current lists of products include olives, wine, Irish and Scotch whiskies, cheese, oranges, lemons, sweaters, pullovers, sweatshirts, suits, swimwear, blankets, bed linen, axes, tweezers, hand tools, knives, printed books, lithographs and self-propelled machinery. The lists are grouped by product category and country. Accordingly, not all covered products from each EU country are included, so importers are advised to review the current and proposed lists.

Products proposed by the USTR to be added to the tariff lists include certain helicopters and aircraft, fish, cheese, fruit, coffee chocolate, olive oil, beer, vodka, certain chemicals, polyester staple fiber, high tenacity polyester yarn, cotton twill fabric, carpets, glassware, and lifting machinery.
 
The additional tariffs on EU products stem from a long-running U.S.-EU dispute over subsidies to Airbus and is pursuant to Section 301 of the Trade Act of 1974, the same provision used to impose additional tariffs on products of China. The trade dispute dates to a 2004 U.S. challenge in the World Trade Organization to EU subsidies of Airbus which had “adverse effects” on the U.S. According to the USTR, the tariffs will be applied until the EU removes the Airbus subsidies.

Interested parties may submit comments to the USTR; those should address whether maintaining or imposing additional duties on a specific product is appropriate to enforce U.S. WTO rights and whether maintaining or imposing additional tariffs would cause disproportionate economic harm to U.S. interests including businesses and consumers. Comments are due by July 26, 2020.

©2020 Greenberg Traurig, LLP. All rights reserved. National Law Review, Volume X, Number 181

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About this Author

Laura Siegel Rabinowitz Corporate Trade Attorney Greenberg Traurig Law Firm
Shareholder

Laura Siegel Rabinowitz counsels domestic and multinational businesses on complex supply chain issues and other complicated challenges associated with trade, advising on mitigation of duty exposure and compliance. Laura has deep experience handling international trade projects for clients, including multinational importers, exporters, manufacturers, retailers, customs brokers, and freight forwarders.

Laura advises clients on mitigating tariffs on Chinese-made products and steel and aluminum and helps clients navigate the maze of regulations,...

212-801-9201
Donald Stein, Greenberg Traurig Law Firm, International Trade and Healthcare Litigation Attorney
Shareholder

Donald S. Stein focuses his practice on federal regulatory issues, and in particular U.S. Customs law, trade remedies and trade policy issues. From dealing with imports and the myriad of laws enforced by the U.S. Bureau of Customs and Border Protection ("CBP"), he has also developed experience in practicing before other federal regulatory agencies, including the U.S. Food and Drug Administration, the U.S. Federal Trade Commission, and the U.S. Fish and Wildlife Service. He is also experienced in working with the U.S. International Trade Commission, the U.S. Department of Commerce and the Office of the U.S. Trade Representative in connection with trade law and trade policy issues.

In the Customs area, Don has wide-ranging experience representing clients in the apparel and agriculture sectors, as well as in many other industries, in tariff classification, valuation, country of origin and country of origin marking matters, as well as defending clients against Customs detentions and seizures, and claims for penalties, liquidated damages, and/or the redelivery of goods. He has also worked closely with U.S. intellectual property owners to help protect their intellectual property against unauthorized and infringing imports. Under the CBP’s regime of "informed compliance," Don has worked with his clients to advise and ensure that they structure their import operations in a manner that is fully compliant with all CBP rules and regulations. He has also worked with clients to design and implement Customs compliance programs. Additionally, Don assists clients who are subject to CBP audits.

In the trade policy area, Don has represented the interests of clients in trade preference matters (free trade agreements and special trade programs), as well as in matters pending before Congress which may affect their interests. He also provides advice to clients on World Trade Organization related issues.

202-530-8502
Axel Urie international Trade and Customs Attorney Greenberg Traurig Law Firm
Associate

Axel Urie is a member of the International Trade and Customs Practice in Greenberg Traurig's Washington, D.C. office. He is experienced in trade remedy and customs matters, including litigation for domestic importers, producers, and foreign exporters.

202-530-8539