We’ve spent a lot of time during the last year discussing US trade remedies, especially where China is concerned. It’s a unique situation where people not impacted by logistics careers start to understand more about international trade because our industry has been in the news so frequently. Effective September 1, 2020, the USTR has released an updated list of goods subjected to Section 301 tariff remedies against the EU (15% for aircraft parts and 25% for everything else ), an action related to the WTO’s Airbus dispute resolution.
The list revises earlier dutied products, removing those from Greece and UK and replacing them with the same value of goods from France and Germany after a comment period was opened up in July to allow discussion on the trade remedies initially proposed. From that comment period, a few updates have happened.
- Removed from list:
- 0406.90.99 – Cheeses & subst. for cheese (incl. mixt.), nesoi, w/o cows milk, w/butterfat over 0.5 percent by wt, not subject to GN15 – Products of Greece.
- 1905.31.00 – Sweet biscuits – Products of United Kingdom
- Added to the list:
- 1905.31.00 – Sweet biscuits – Products of Germany
- 2007.99.05 Lingonberry and raspberry jams – Products of France or Germany
- 2007.99.10 Strawberry jam – Products of France or Germany
- 2007.99.15 Currant and other berry jams, nesoi – Products of France or Germany
- 2007.99.20 Apricot jam – Products of France or Germany
- 2007.99.25 Cherry jam – Products of France or Germany
- 2007.99.35 Peach jam – Products of France or Germany
- 2007.99.60 Strawberry pastes and purees, being cooked preparations – Products of France or Germany
As we’ve discussed in the past, it’s important to remember that these are the only tariffs in this action against the EU, but may see a retaliatory tariff application from the EU on the US as a similar case of illegal subsidies with regard to Boeing is still pending at the WTO. Because these current duties are in response to the EU offering similar subsidies to Airbus, there’s no reason to think the WTO won’t be consistent in allowing the same retaliation against the US when the Boeing case is settled. It’s important to note, there will likely be retaliation because the US came out quick and strong once the Airbus decision was reached.
If you’re working to import goods marked for Section 301 tariffs from the EU or need to investigate your supply chain for alternative products or just want to see what options you have to import your cargo, you can trust the professionals at Edward J. Zarach & Associates. Reach out to your representative today to make a comprehensive cargo plan!