Certain Effects on Section 232 and 301 Tariffs Reduced Imports and Increased Prices and Production in many U.S. Industries - U.S. International Trade Commission
Additional U.S. tariffs imposed under section 232 on imports of steel and aluminum products and under section 301 on certain imports from China reduced U.S. imports of these products and increased U.S. production and prices of these products, affecting the many industries that produce or sell these products or use them as inputs, according to the U.S. International Trade Commission (USITC) in a report released today.
The report, Economic Impact of Section 232 and 301 Tariffs on U.S. Industries, was prepared in response to a direction by the House and Senate Committees on Appropriations in an explanatory statement accompanying the Consolidated Appropriations Act, 2022, enacted on March 15, 2022.
As directed by the explanatory statement, the USITC, an independent, nonpartisan, factfinding federal agency, conducted a retrospective analysis of any tariffs imposed under section 232 of the Trade Expansion Act of 1962 and under section 301 of the Trade Act of 1974 that were active as of March 15, 2022. These actions included section 232 tariffs imposed on certain steel and aluminum products beginning in March 2018 and section 301 tariffs imposed on thousands of products imported from China beginning in July 2018. The explanatory statement directed that the report focus on the effects on trade, production, and prices in the industries directly and most affected.
The report includes:
• A description of the statutory provisions and recent actions under sections 232 and 301, including the major findings from the U.S. investigations that led to imposition of the tariffs.
• A description of the status and chronologies of tariffs under sections 232 and 301 as of March 15, 2022.
• A review of recent trade, production, and price trends in the directly and most affected industries.
• An economic analysis of the effects of these tariffs on the directly and most affected industries.
The report finds that on average from 2018 to 2021:
U.S. importers bore nearly the full cost of these tariffs because import prices increased at the same rate as the tariffs. The USITC estimated that prices increased by about 1 percent for each 1 percent increase in the tariffs under sections 232 and 301.
Section 232 tariffs reduced imports of affected steel products by 24 percent, increased the price of steel products in the United States by 2.4 percent, and increased U.S. production of steel products by 1.9 percent. U.S. production of steel was $1.3 billion higher in 2021 due to section 232 tariffs.
Section 232 tariffs reduced imports of affected aluminum products by 31 percent, increased the price of aluminum products in the United States by 1.6 percent, and increased U.S. production of aluminum products by 3.6 percent. U.S. production of aluminum was $0.9 billion higher in 2021 due to section 232 tariffs.
Section 232 increased domestic sourcing, and reduced production in downstream industries in the United States that use steel and aluminum products as inputs because of increased prices, although the magnitude of those effects varied across industries. Section 232 tariffs increased prices in downstream industries 0.2 percent on average, and decreased production in downstream industries 0.6 percent on average. U.S. production in downstream industries was $3.5 billion less in 2021 due to section 232 tariffs.
Across all affected sectors, section 301 tariffs reduced imports from China by 13 percent, increased the value of U.S. production by 0.4 percent, and increased the price of U.S. products by 0.2 percent.
In specific sectors, effects of section 301 tariffs varied. For example, section 301 duties reduced imports of computer equipment by 5 percent, increased the price of computer equipment in the U.S. by 0.8 percent, and increased the value of U.S. production of computer equipment by 1.2 percent. The section 301 tariffs reduced imports of semiconductors by 72.3 percent, increased the price of semiconductors in the U.S. by 4.1 percent, and increased the value of U.S. production of semiconductors by 6.4 percent.
Consistent with the explanatory statement’s direction to estimate effects in industries directly and most affected, the report estimates the effects of 232 tariffs on the U.S. steel and aluminum industries and downstream industries that intensively consume steel and aluminum and the effects of section 301 tariffs on industries in the United States that produce the products subject to 301 tariffs. In view of the one-year timeframe for the report’s completion, the report does not include estimated effects of section 301 tariffs on downstream industries that consume products subject to 301 tariffs or on industries beyond those directly and most affected. The estimates concern effects on trade, production, and prices. The report does not estimate the tariffs’ effects on other factors, for example, investment or their contribution to the national security or intellectual property protection concerns that led to the tariffs’ imposition. The analysis focuses on short-term effects during 2018 to 2021 and does not address long-term effects as it is not a forward-looking analysis. The report is not an assessment of the complete, economy-wide impacts of the tariffs under sections 232 and 301 and cannot be used to draw broad conclusions about whether the tariffs under sections 232 and 301 did or did not produce a net benefit for the U.S. economy overall. The analysis in this report is, by design, not intended to address those questions.
Economic Impact of Section 232 and 301 Tariffs on U.S. Industries (Investigation No. 332-591, USITC Publication 5405, March 2023) is available on the USITC's Internet site at
https://www.usitc.gov/sites/default/files/publications/332/pub5405.pdf
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Federal Register Notices:
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Passenger Vehicle Light Truck Tires (PVLT) From China: Final Results of Countervailing Duty Administrative Review; 2020
• Determination of Sales at Less Than Fair Value: Certain Freight Rail Couplers and Parts Thereof From the People's Republic of China: Preliminary Affirmative Determination of Sales at Less Than Fair Value and Preliminary Affirmative Determination of Critical Circumstances
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Stainless Steel Sheet and Strip From Japan, South Korea, and Taiwan; Scheduling of Full Five-Year Reviews
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Initiation of Antidumping and Countervailing Duty Administrative Reviews
• Certain Steel Nails From Malaysia: Amended Final Results of Antidumping Duty Administrative Review; 2020-2021
• Certain Passenger Vehicle and Light Truck Tires From the People's Republic of China: Final Results of Antidumping Duty Administrative Review and Final Determination of No Shipments; 2020-2021
• Light-Walled Rectangular Pipe and Tube From Mexico: Final Results of Antidumping Duty Administrative Review; 2020-2021
• Certain Tool Chests and Cabinets From the People's Republic of China and the Socialist Republic of Vietnam: Final Results of the Expedited Sunset Reviews of the Antidumping Duty Orders
• Finished Carbon Steel Flanges From India: Final Results of Antidumping Duty Administrative Review; 2020-2021
• Light-Walled Rectangular Pipe and Tube From the People's Republic of China: Final Results of Antidumping Duty Administrative Review; 2020-2021
• Gas Powered Pressure Washers From the People's Republic of China: Postponement of Preliminary Determination in the Countervailing Duty Investigation
• Certain Cased Pencils From the People's Republic of China: Continuation of Antidumping Duty Order
• Circular Welded Carbon Quality Steel Pipe From the United Arab Emirates: Notice of Court Decision Not in Harmony With the Results of Antidumping Administrative Review; Notice of Amended Final Results
• Investigations; Determinations, Modifications, and Rulings, etc.: Certain Fitness Devices, Streaming Components Thereof, and Systems Containing Same Notice of the Commission's Final Determination Finding a Violation of Section 337; Issuance of a Limited Exclusion Order and Cease and Desist Orders; Termination of the Investigation
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Carbon and Certain Alloy Steel Wire Rod From Belarus, Italy, the Republic of Korea, the Russian Federation, the Republic of South Africa, Spain, the Republic of Turkey, Ukraine, the United Arab Emirates, and the United Kingdom: Final Results of Expedited First Sunset Reviews of Antidumping Duty Orders
• Investigations; Determinations, Modifications, and Rulings, etc.: Certain Compact Wallets and Components Thereof; Institution of Investigation
• Investigations; Determinations, Modifications, and Rulings, etc.: Softwood Lumber Products From Canada; Notice of Commission Determination To Conduct Full Five-Year Reviews
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U.S. Department of Commerce Leads Largest Trade Mission to Southeast Asia - U.S. Department of Commerce
WASHINGTON – Between March 9-16, 2023, the U.S. Department of Commerce’s International Trade Administration will lead over 100 American businesses representing over 20 industry sectors to several Association of Southeast Asia Nations (ASEAN) member states for Trade Winds ASEAN, the U.S. government’s largest annual trade mission and business development forum.
Trade Winds ASEAN will provide qualifying U.S. businesses looking to expand into new markets with in-person meetings with global distributors, sales and government representatives, as well as networking opportunities and conference programming as they explore commercial opportunities in these partnering countries. Approximately 90% of the companies participating in Trade Winds ASEAN are micro-, small-, or medium-sized enterprises, with more than a third being women- minority- or veteran-owned.
Trade Winds ASEAN centers around a three-day business forum (March 13-15) in Bangkok, Thailand, that features meetings with U.S. commercial diplomats and trade experts from over 20 countries across Asia, plenary sessions and networking events.
Companies will also join Commerce officials for optional trade mission stops in Vietnam, the Philippines, Singapore, Malaysia and Indonesia where they will meet directly with foreign government leaders, market experts and pre-vetted potential business partners. In total, Trade Winds ASEAN will host nearly 450 government-to-business meetings and over 400 business-to-business engagements.
Under Secretary of Commerce for International Trade, Marisa Lago, is leading a delegation of 17 U.S. companies to the Trade Winds ASEAN mission stop in Vietnam, on March 9-10, and will also lead the Trade Winds ASEAN business forum in Bangkok on March 13-15.
“Building on the Biden Administration’s Indo-Pacific Strategy and fulfilling a commitment Secretary Raimondo made at the U.S.-ASEAN Special Summit in May 2022, Trade Winds ASEAN brings American companies to the region to grow prosperity and jobs in the United States and across the Indo-Pacific,” said Marisa Lago, Under Secretary of Commerce for International Trade. “Trade Winds is a core component of Commerce’s central mission to help American companies and their workers compete – and win – on a global scale.”
For more information on Trade Winds ASEAN, visit the U.S. Commercial Service website.
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CBP at JFK Returns Cultural Artifacts to Ukraine - U.S. Customs & Border Protection
JAMAICA, N.Y. — U.S. Customs and Border Protection (CBP) officers at the Port of John F. Kennedy International Airport (JFK) International Mail Facility, with the help from officers at the National Targeting Center, Antiquities Unit seized a stone axe head and three metal swords on September 2, 2022.
The three metals swords arrived from Russia and the stone axe head arrived from the Ukraine. The items were identified as Ukrainian culture property by representatives from the Ukrainian government.
"U. S. Customs and Border Protection is extremely proud to have played an important role in the seizing of these artifacts that were stolen from the people of Ukraine," said Francis J. Russo, Director New York Field Operations. “CBP, working with Homeland Security Investigations continues to demonstrate its resolve to combat illegal trafficking in stolen artifacts."
Most countries have laws that protect their cultural property, such as art, artifacts, antiquities, or other archeological and ethnological material. These laws include export controls and national ownership of cultural property. Therefore, although they do not necessarily confer ownership, consignees or importers must have documents such as export permits and receipts when importing such items into the United States.
The Department of Homeland Security enforces the cultural property import restrictions agreed to in bilateral agreements that the United States has concluded with 20 countries and through emergency import restrictions for three additional countries. These bilateral agreements protect cultural property by restricting U.S. import of certain categories of archeological and ethnological material, thus reducing incentive for looting at heritage sites. Read more about these bilateral agreements on importation of cultural property.
Since the beginning of fiscal year 2023 to now, CBP at JFK has recorded 13 seizures of cultural property with a domestic value of over $1.1 million. CBP partners with Immigration and Customs Enforcement in the detection, interception, investigation, and repatriation of cultural property. Read more about ICE Cultural Property investigations.
CBP officers screen international travelers and cargo and search for illicit narcotics, unreported currency, weapons, counterfeit consumer goods, prohibited agriculture, and other illicit products that could potentially harm the American public, U.S. businesses, and our nation’s safety and economic vitality.
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FTC Launches Inquiry into Small Business Credit Reports - Federal Trade Commission
Commission to examine compilation and dissemination of business credit reports that can impact small businesses’ success
The Federal Trade Commission has launched an inquiry into the small business credit reporting industry, ordering five firms in that industry to provide the Commission with detailed information about their products and processes. The orders will be issued to Dun & Bradstreet, Experian Information Solutions, Equifax, Ansonia Credit Data, and Creditsafe USA.
“Like consumers, small businesses rely on fair and accurate credit reports in order to access key services. But because it isn’t covered by the same laws that apply to consumer services, credit reporting for businesses is tremendously opaque,” said FTC Chair Lina M. Khan. “This FTC inquiry will shine a much-needed light on the credit reporting industry and the related challenges that small businesses face.”
Unlike credit reports for individual consumers, which are governed by the Fair Credit Reporting Act, there is no federal law that specifically outlines processes and protections available to small businesses when it comes to credit reporting. This can make business credit reporting hard to understand, and it can be particularly difficult for small businesses to navigate how to correct errors or omissions in their credit reports in a timely fashion.
These reports can significantly affect small businesses, potentially impacting the terms on which they can obtain the goods, services, and equipment they need to stay in business. Because many of these credit reporting companies start developing a company’s credit report at the time it incorporates, tapping public records and other available financial data, business owners may not even be aware a report about them exists. Sometimes small businesses only discover they have a credit report when they are denied credit by a supplier.
The Commission’s inquiry will examine multiple aspects of how information is collected and processed for business credit reports, how the reports are marketed, and how and whether the credit reporting companies address factual errors in the reports. In addition to information about these topics, the orders also require the companies to provide information on services they provide to businesses to monitor or enhance their own credit reports.
Last April, the FTC secured an order with Dun & Bradstreet in which the company was required to make changes to its processes to help ensure that it responds promptly and fully to businesses’ complaints about incorrect information in their business credit reports, and to be upfront around the limitations of the company’s business credit reporting products. The company was also required to provide refunds to affected customers, and to make it easier for customers to cancel certain business credit report monitoring and managing products.
The FTC is issuing the orders under Section 6(b) of the FTC Act, which authorizes the Commission to conduct studies without a specific law enforcement purpose. The companies will have 60 days from the date they receive the order to respond.
The Commission vote to issue the orders was 4-0.
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CBP Phone Scam Continues to Target Citizens Callers Seek Information to Bypass Financial Protocols - U.S. Customs & Border Protection
HOUSTON – Telephone scammers are targeting residents nationwide to gain personal information that would bypass financial security protocols.
U.S. Customs and Border Protection employees are continuing to receive numerous calls from people concerned about unsolicited calls from scammers posing as U.S. Border Patrol agents and U.S. Customs and Border Protection officers.
“We are seeing a spike of phone calls from concerned citizens about scammers posing as CBP employees seeking information about suspected illegal activity,” said CBP Houston Director of Field Operations Jud Murdock. “If CBP suspects illegal activity, we will not call a suspect or a victim requesting money or social security numbers. To be clear, CBP will not make telephone calls threatening citizens that law enforcement is on the way or promising money for information. Anyone receiving a call from U.S. Customs and Border Protection about a shipment of drugs or money should recognize that it is a scam regardless of how authentic the caller may sound.”
Would-be victims are reporting that the scammers are insistent that they must confirm certain details because CBP has intercepted a shipment of drugs with the “target’s” name and address and that cooperation is important to ensure the case is resolved. If the target refuses to comply, the scammer threatens that the police will be arriving. When the scammer is asked for a name, he provides an actual CBP employee’s name and phone number available on the internet for the target to verify. Some scammers are even providing fake case numbers and badge numbers.
A variation of this call is a pre-recorded message stating that a “shipment of drugs or money with your name on it and has been intercepted.” The target is then instructed to press #1 to speak with a CBP Officer/Agent. When connected, the scammer then attempts to confirm the target’s banking information.
These calls, whether a pre-recorded message or live person, are phone scams/phishing attempts and residents are urged to not provide the caller with any information. The Department of Homeland Security and CBP does not solicit money over the phone.
If you get a call like this, here are a few things to keep in mind:
• CBP won’t call you out of the blue with promises of money or threats. Is the caller asking you to pay a fee or share your Social Security, credit card, or bank account numbers over the phone? Hang up. It’s a scam.
• CBP never uses gift cards, cryptocurrency, or wire transfers. If someone asks you to pay this way, it’s a scam. Always.
• Don’t trust caller ID. Scammers can make their phone numbers look real even if they’re not.
• Check with CBP if you’re unsure about whether a call or email is real. Never call back phone numbers in caller ID, or left in voicemails, emails, or social media messages. Instead, type the agency name into a search bar and click on their webpage to find contact information.
Anyone receiving any type of call from someone claiming to be from U.S. Customs and Border Protection and seeking any type of personal information, should just hang up. Phone scams can be reported to the Federal Trade Commission online.
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CPSC Warns Consumers to Immediately Stop Using TureClos Bicycle Helmets Due to Risk of Head Injury; Sold at Walmart.com - U.S. Consumer Product Safety Commission
WASHINGTON, D.C. – The U.S. Consumer Product Safety Commission (CPSC) is warning consumers to immediately stop using TureClos bicycle helmets because the helmets do not comply with federal safety standards. The helmets can fail to protect riders in the event of a crash, posing a risk of head injury.
The helmets do not comply with the positional stability, retention system, impact attenuation, and labeling requirements of the mandatory federal safety standard for bicycle helmets.
The seller, Dongguanshisuyubgsgabgnaiyiuxiangongsi, of China, has refused to recall these helmets or offer a remedy to consumers. CPSC is continuing to pursue a recall.
The bicycle helmets were sold online at www.walmart.com from March 2022 through November 2022 for about $13. The helmets were sold in size Large (L), fitting a head circumference of about 22 ½ to 25 inches. The helmets are black with blue accents, with black and white stripes, black straps and a red buckle. There is no labeling inside the helmet and no outer markings.
CPSC tested the TureClos bicycle helmets subject to this warning and determined the helmets failed to meet federal safety standard. CPSC is aware of other TureClos bicycle helmets offered for sale online in the color red but has not specifically tested the safety of those helmets. CPSC urges consumers to stop using, cut the straps, and dispose of these helmets immediately. Report any incidents involving product injuries or defects to CPSC at www.SaferProducts.gov.