Latest news with #TradeExpansionActof1962
Politico
2 days ago
- Business
- Politico
EU deal turns up heat on holdouts
QUICK FIX — President Donald Trump's trade deal with the European Union could prompt other partners to move more quickly in pursuit of assurances they'll avoid new tariffs next week. — Top Trump administration officials are meeting their Chinese counterparts this week, amid growing expectations for a leaders-level summit. — Senior U.S. officials said Section 232 tariffs on pharmaceuticals and semiconductors are expected within the next three weeks. It's Monday, July 28. Welcome to Morning Trade! Got news tips? Suggestions? Want to grab a coffee? Hit us up at: ahawkins@ ddesrochers@ and dpalmer@ Follow us on X: @_AriHawkins, @drdesrochers and @tradereporter. Want to receive this newsletter every weekday? Subscribe to POLITICO Pro. You'll also receive daily policy news and other intelligence you need to act on the day's biggest stories. Driving the day PRELIMINARY DEAL REACHED: Trump on Sunday reached a deal with the European Union to avert a renewed transatlantic trade war — raising pressure on the remaining U.S. trading partners without updated terms to shield them from planned Aug. 1. hikes. The background: On the heels of talks in Scotland with European Commission President Ursula von der Leyen, Trump told reporters the 27-country bloc agreed to purchase $750 billion of energy products and invest $600 billion more than planned into the United States. The deal also includes a flat 15 percent tariff on goods from Brussels with zero percent tariffs on U.S. goods. A senior U.S. official, granted anonymity to discuss talks, clarified in a call for reporters on Sunday that the rate would apply to at least some sectors that are currently the subject of probes, such as pharmaceuticals and semiconductors, under Section 232 of the Trade Expansion Act of 1962, which allows a president to restrict imports on certain industries to protect national security. Taste of talks: The official said that Trump sent the bloc a letter threatening a tariff hike earlier this month because 'we had met with them collectively 13 times in videos and in person, and they didn't even make us an offer.' But they added that Trump's letter supposedly 'changed everything' because the EU realized he was serious about his threats to massively hike tariffs. Everett Eissenstat, White House trade adviser during Trump's first term, told Morning Trade that countries now have a clearer sense of 'what parameters he'll agree to' — and cautioned that 'a lot of countries are going to feel domestic pressure to try to get an agreement before the deadline' on Friday. The U.S.-EU deal appears to closely match the terms of an agreement announced last week with Japan, which also set tariffs on most Japanese imports at 15 percent. Those reductions extended to autos and auto parts as well, partly mirroring a provision in the United Kingdom deal announced in May — which offered even greater relief by lowering tariffs to 10 percent on the first 100,000 cars entering the United States annually, and keeping that 'baseline' tariff in force. But while more countries now have more examples of the terms Trump is willing to accept, the update also underscores that among the U.S.' top 10 trading partners, only Mexico, Canada, Taiwan and India have yet to secure new agreements to shield them from the planned tariff hikes — putting them under new pressure to lock in concrete protections. North American pals? A separate White House official previously told Morning Trade that if higher rates are applied, only a portion of North American goods trade — potentially around 60 percent — would be subject to higher tariffs on trade with Canada and Mexico. Those countries have not recently been the central focus of the administration's trade negotiations, although finalizing the deal with the EU does 'open us up' to focus more concretely on other countries, that official told your host on Sunday. How we got here: In total, the U.S. has announced skeletal 'deals' with nearly half a dozen partners, including China, Japan, Indonesia and Vietnam. Meanwhile, U.K. Prime Minister Keir Starmer is speaking with Trump today in Washington, giving both countries another chance to hammer out remaining details of a broad framework they unveiled in May. REGULATORY REVIEW PUSH FOR A US-CHINA DEAL: The Trump administration is also pursuing talks with China ahead of a separate Aug. 12 deadline, with a U.S. delegation in Stockholm this week led by Treasury Secretary Scott Bessent. 'I'm going to be in Stockholm on Monday and Tuesday with my Chinese counterparts, and we'll be working out what is likely an extension then,' Bessent said in an interview last week. What to watch: The confab will give both countries another chance to iron out a long list of persisting trade disputes. China and the U.S. are even expected to nail down a deal that would delay a massive U.S. tariff increase scheduled to take effect next month, according to a report Sunday from the South China Morning Post, which cited unnamed sources. POLITICO has not confirmed that report. Background: Through a series of tit-for-tat trade measures, Trump ratcheted up tariffs on Chinese goods this past spring to 145 percent, including a 20 percent rate related to the flow of fentanyl into the U.S. Following meetings in Geneva and London, the U.S. reduced the additional tariffs on China to roughly 55 percent. That includes tariffs Trump imposed during his first term, as well as his second. However, under an executive order Trump signed on May 12, those rates are scheduled to go back up to 145 percent next month if a more comprehensive deal isn't reached. BRACE FOR SECTION 232'S: Sector-based tariffs on semiconductors and pharmaceuticals could be imposed within three weeks, a senior U.S. official told reporters on a call on Sunday. 'Those are coming over the next ... three weeks,' said the official, referring to tariffs that are likely to be imposed under Section 232, speaking on a call with reporters focused on the terms of the EU-U.S. trade deal. Why it matters: Sector-based tariffs are becoming an increasingly central focus of discussions, as tariffs Trump imposed under emergency powers face court challenges. Reminder: Commerce in April launched a pair of national security investigations that could lead to new tariffs on imports of pharmaceuticals and semiconductors, according to notices uploaded to the Federal Register. US LOCKS IN LUMBER HIKE: The Commerce Department on Friday announced its final decision raising anti-dumping duties on most Canadian softwood lumber imports to 20.56 percent, to offset unfairly low prices and Canadian government subsidies. The hike nearly triples the anti-dumping duty rate, which was set at 7.66 percent, and is in addition to 6.74 percent countervailing duties. The final rates are shaved down from preliminary figures unveiled in March, which would have set anti-dumping duties to 20.77 percent. TRADE OVERNIGHT — U.S. companies are facing annual costs of up to $97.6 billion due to European digital regulations, according to a new report from the Computer & Communications Industry Association Research Center — Jordan to tackle EU tech law on delegation to London, Brussels, per POLITICO Pro. — US steel producers urge Trump to maintain tough line on steel tariffs, per POLITICO Pro. — The US is nearing a trade deal with Europe. Will Trump stand in the way?, POLITICO reports. — Booker tells Dems to join TikTok, sparks Senate Rules pushback, POLITICO Pro reports. THAT'S ALL FOR MORNING TRADE! See you again soon! In the meantime, drop the team a line: dpalmer@ ddesrochers@ and ahawkins@ Follow us @POLITICOPro and @Morning_Trade.
The Hindu
2 days ago
- Business
- The Hindu
U.S. to release result of probe into chip imports in two weeks
The Trump administration will announce the results of a national security probe into imports of semiconductors in two weeks, U.S. Commerce Secretary Howard Lutnick said on Sunday, as U.S. President Donald Trump suggested higher tariffs were on the horizon. Lutnick told reporters after a meeting between Trump and European Commission President Ursula von der Leyen that the investigation was one of the "key reasons" the European Union sought to negotiate a broader trade agreement that would "resolve all things at one time." Trump said many companies would be investing in semiconductor manufacturing in the United States, including some from Taiwan and other places, to avoid getting hit by new tariffs. He said von der Leyen had avoided the pending chips tariffs "in a much better way." Trump and von der Leyen announced a new framework trade agreement that includes across-the-board 15% tariffs on EU imports entering the United States. Trump said the agreement included autos, which face a higher 25% tariff under a separate sectoral tariff action. The Trump administration in April said it was investigating whether extensive reliance on foreign imports of pharmaceuticals and semiconductors posed a national security threat. The probe, being conducted under Section 232 of the Trade Expansion Act of 1962, could lay the groundwork for new tariffs on imports in both sectors. The Trump administration has begun separate investigations under the same law into imports of copper and lumber. Earlier probes completed during Trump's first term formed the basis for 25% tariffs rolled out since his return to the White House in January on steel and aluminum and on the auto industry. Trump has upended global trade with a series of aggressive levies against trading partners, including a 10% tariff that took effect in April, with that rate set to increase sharply for most larger trading partners from August 1. The U.S. relies heavily on chips imported from Taiwan, something Democratic former President Joe Biden sought to reverse during his term by granting billions of dollars in Chips Act awards to lure chipmakers to expand production in the United States.
Time of India
3 days ago
- Business
- Time of India
US to release result of probe into chip imports in two weeks
The Trump administration will announce the results of a national security probe into imports of semiconductors in two weeks, Commerce Secretary Howard Lutnick said on Sunday, as President Donald Trump suggested higher tariffs were on the horizon. Lutnick told reporters after a meeting between Trump and European Commission President Ursula von der Leyen that the investigation was one of the "key reasons" the European Union sought to negotiate a broader trade agreement that would "resolve all things at one time." Trump said many companies would be investing in semiconductor manufacturing in the United States, including some from Taiwan and other places, to avoid getting hit by new tariffs. He said von der Leyen had avoided the pending chips tariffs "in a much better way." Trump and von der Leyen announced a new framework trade agreement that includes across-the-board 15% tariffs on EU imports entering the United States. Trump said the agreement included autos, which face a higher 25% tariff under a separate sectoral tariff action. The Trump administration in April said it was investigating whether extensive reliance on foreign imports of pharmaceuticals and semiconductors posed a national security threat. The probe, being conducted under Section 232 of the Trade Expansion Act of 1962, could lay the groundwork for new tariffs on imports in both sectors. The Trump administration has begun separate investigations under the same law into imports of copper and lumber. Earlier probes completed during Trump's first term formed the basis for 25% tariffs rolled out since his return to the White House in January on steel and aluminum and on the auto industry. Trump has upended global trade with a series of aggressive levies against trading partners, including a 10% tariff that took effect in April, with that rate set to increase sharply for most larger trading partners from August 1. The U.S. relies heavily on chips imported from Taiwan, something Democratic former President Joe Biden sought to reverse during his term by granting billions of dollars in Chips Act awards to lure chipmakers to expand production in the United States.
New York Post
3 days ago
- Business
- New York Post
US to release result of probe into chip imports in 2 weeks: Lutnick
The Trump administration will announce the results of a national security probe into imports of semiconductors in two weeks, Commerce Secretary Howard Lutnick said on Sunday, as President Trump suggested higher tariffs were on the horizon. Lutnick told reporters after a meeting between Trump and European Commission President Ursula von der Leyen that the investigation was one of the 'key reasons' the European Union sought to negotiate a broader trade agreement that would 'resolve all things at one time.' Trump said many companies would be investing in semiconductor manufacturing in the US, including some from Taiwan and other places, to avoid getting hit by new tariffs. 3 The Trump administration announced in the spring it was investigating whether extensive reliance on imports of semiconductors and pharmaceuticals was a threat to national security. REUTERS He said von der Leyen had avoided the pending chips tariffs 'in a much better way.' Trump and von der Leyen announced a new framework trade agreement that includes across-the-board 15% tariffs on EU imports entering the US. Trump said the agreement included autos, which face a higher 25% tariff under a separate sectoral tariff action. 3 European Commission President Ursula von der Leyen and President Trump met on Sunday. Getty Images The Trump administration in April said it was investigating whether extensive reliance on foreign imports of pharmaceuticals and semiconductors posed a national security threat. The probe, being conducted under Section 232 of the Trade Expansion Act of 1962, could lay the groundwork for new tariffs on imports in both sectors. 3 Commerce Secretary Howard Lutnick. REUTERS The Trump administration has begun separate investigations under the same law into imports of copper and lumber. Earlier probes completed during Trump's first term formed the basis for 25% tariffs rolled out since his return to the White House in January on steel and aluminum and on the auto industry. Trump has upended global trade with a series of aggressive levies against trading partners, including a 10% tariff that took effect in April, with that rate set to increase sharply for most larger trading partners on Friday. The US relies heavily on chips imported from Taiwan, something former President Joe Biden sought to reverse during his term by granting billions of dollars in Chips Act awards to lure chipmakers to expand production in the US.
CNBC
3 days ago
- Business
- CNBC
Lutnick: U.S. to release result of probe into chip imports in two weeks
The Trump administration will announce the results of a national security probe into imports of semiconductors in two weeks, Commerce Secretary Howard Lutnick said on Sunday, as President Donald Trump suggested higher tariffs were on the horizon. Lutnick told reporters after a meeting between Trump and European Commission President Ursula von der Leyen that the investigation was one of the "key reasons" the European Union sought to negotiate a broader trade agreement that would "resolve all things at one time." Trump said many companies would be investing in semiconductor manufacturing in the United States, including some from Taiwan and other places, to avoid getting hit by new tariffs. He said von der Leyen had avoided the pending chips tariffs "in a much better way." Trump and von der Leyen announced a new framework trade agreement that includes across-the-board 15% tariffs on EU imports entering the United States. Trump said the agreement included autos, which face a higher 25% tariff under a separate sectoral tariff action. In April, the Trump administration announced that it was investigating whether the extensive reliance on foreign imports of pharmaceuticals and semiconductors posed a national security threat. The probe, being conducted under Section 232 of the Trade Expansion Act of 1962, could lay the groundwork for new tariffs on imports in both sectors. The Trump administration has begun separate investigations under the same law into imports of copper and lumber. Earlier probes completed during Trump's first term formed the basis for 25% tariffs rolled out since his return to the White House in January on steel and aluminum and on the auto industry. Trump has upended global trade with a series of aggressive levies against trading partners, including a 10% tariff that took effect in April, with that rate set to increase sharply for most larger trading partners from August 1. The U.S. relies heavily on chips imported from Taiwan, a fact that Democratic former President Joe Biden sought to address during his term by awarding billions of dollars in Chips Act funds to lure chipmakers to expand production in the United States.
