Yesterday, January 22, 2018, U.S. Trade Representative (USTR) Robert Lighthizer announced the imposition of safeguard tariffs on solar cells and modules. Much has been said in the general press about this case, but only now is the key point starting to register, and is something international traders immediately thought about – is President Trump starting a new trade war with China?
By way of a quick summary, after seeking relief through the antidumping and countervailing duty laws and not getting the desired market relief, Suniva, later joined by SolarWorld, invoked Section 201 of the Trade Act of 1974. The appropriate petition was brought, the International Trade Commission (ITC) conducted the required proceedings, found detrimental harm, and made recommendations to the President. While disagreement among the Commissioners was acknowledged, most favored an increase in duties, and President Trump agreed. Safeguard tariffs have been imposed for four years – the maximum length of time permitted – on a per year basis – 30%, 25%, 20% and 15%. The USTR announcement also states the first 2.5 gigawatts of imported cells are excluded from the safeguard tariff. A critical point here is these safeguards are being imposed on both the cells and the modules, regardless of where made, as would be expected from a global safeguard, but the solar cells are overwhelmingly made in China. (more…)
On September 21, 2017, President Trump issued an Executive Order (yet to be numbered) (“EO”) imposing additional sanctions on North Korea. It took effect the next day. The general press has quoted Treasury Secretary Mnuchin as stating: “Foreign financial institutions are now on notice that going forward they can choose to do business with the United States or North Korea, but not both.” These latest changes raise the specter for even more caution on the part of companies conducting international business. The question every CFO at every company should ask is – is our due diligence program as good as it needs to be? If not, your funds could get seized and dealing with the Dept. of Justice in these types of cases can be quite challenging. The government often has information the private sector does not possess and, if your due diligence program is not deemed sufficient, you stand little chance of getting those funds released. Given the current climate, you can bet getting funds released related to the North Korea sanctions is going to be even more difficult!
The new Executive Order is broadly worded to include any person who is determined: (more…)
Two actions took place at the end of last week which heighten concerns that a trade war with China could be ever more likely. First, there was the preliminary decision in the solar panels 201 case. Then, we had the additional sanctions imposed by the President on North Korea.
The 201 solar panel case began when Suniva Inc. and SolarWorld Americas Inc. filed their cases before the International Trade Commission (“ITC”) in April and May 2017. These actions are, of course, in addition to the antidumping and countervailing duties currently being imposed on these products from China. (more…)
On March 6, 2017, President Trump reissued the Executive Order, “Protecting the Nation from Foreign Terrorist Entry into the United States,” with an effective date of March 16, 2017. The previous Executive Order 13769 of January 27, 2017, will be revoked on March 16, 2017, and replaced with this reissued Order.
The new Executive Order bans immigrant and nonimmigrant entries for nationals of six designated countries – Syria, Iran, Libya, Somalia, Sudan, and Yemen – for at least 90 days beginning on March 16, 2017. The new Executive Order specifically removes Iraq from the list of designated countries. (more…)
On January 27, 2017, President Trump signed an Executive Order that provided the following:
Suspends nonimmigrants (persons coming temporarily to the United States) from designated countries from entry to the United States for a period of up to ninety (90) days from the date of the order (January 27, 2017). At this time, the designated countries are Iran, Iraq, Libya, Somalia, Sudan, Syria, and Yemen. Additional countries may be added. This prohibition does not apply to foreign nationals traveling on diplomatic visas, NATO visas, and United Nations visas. It is unclear if the Executive Order applies only to (1) individuals who hold passports from the designated countries, or if it also applies to (2) foreign nationals who were born in the designated countries, but who are citizens of other, non-designated countries or who are dual nationals, or (3) whose parents were born or hold citizenship from the designated countries. However, according to the Wall Street Journal, the State Department will announce that dual nationals are subject to the ban. For example, a dual national of Iraq and the United Kingdom would be denied entry, even if the dual national travels on a UK passport.