U.S. Imposes $200 Billion in Tariffs on China; China Retaliates

On Monday, September 24 the Trump Administration began implementing tariffs on a list of products announced on September 17. This latest set of tariffs are set at 10 percent on $200 billion worth of imports from China. These tariffs come on top of the $50 billion worth of tariffs already imposed earlier this year, meaning nearly half of all Chinese imports into the United States will soon face levies. The tariffs will remain at 10 percent until the end of the year, and if China does not make adequate concessions, these new tariffs will then increase to 25 percent on January 1, 2019.

The United States Trade Representative (USTR) published a list of the wide range of products that will be affected.

In response, the Chinese government announced retaliatory tariffs of 5 to 10 percent on $60 billion of imports from the United States. Items effected range from meat to wheat to aircraft and took effect on September 24.

U.S., Japan to Begin Trade Negotiations

On Wednesday, September 26 U.S. President Donald Trump and Japanese Prime Minister Shinzo Abe issued a joint statement announcing that the United States and Japan will enter into trade negotiations for a United States-Japan Trade Agreement. The agreement will encompass goods as well as services, and both countries are also willing to discuss other trade and investment issues.

In the statement, the United States and Japan emphasized that this agreement will respect the positions of both governments on sensitive trade topics, including automobiles and agriculture.

Read the full statement here.

U.S., Korea Sign Revised Trade Agreement

On Monday, September 24 U.S. President Donald Trump and South Korean President Moon Jae- issued a joint statement regarding the conclusion of the negotiations to revise KORUS, the Korea-United States free trade agreement.

The updated KORUS agreement includes several small changes that could result in improved Korean market access for U.S. automakers, an extension of U.S. tariffs on Korean pickup trucks until 2041, and Korean steelmakers being subject to a quota of about 2.68 million tons of steel exports that will be exempt from the new tariffs. This is 70 percent of the annual average Korean steel exports to the United States between 2015-2017.

U.S. FDA Announces new Export Certification Program

On August 31, the U.S. Food and Drug Administration (FDA) announced its new export certification program for certain FDA-regulated products such as grains, processed foods, food additives, color additives, food contact substances, and infant formula. The FDA may charge up to $175 for each certification.

The FDA anticipates that this new export certification will facilitate trade by assisting U.S. food exporters in fulfilling importing country requirements for FDA certification of FDA-regulated food products. Exporters should note that the FDA’s export certification program for foods is intended to be complementary to export certification for foods currently issued by other U.S. government agencies. As the FDA launches this new export certification program for foods, the arrangements currently in place for certain food commodities with other U.S. government agencies will remain the same.

The FDA will begin issuing and collecting fees for the new export certifications on October 1, 2018. For more information, see the Federal Register notice.