He also said the current 25 percent tariff on 250

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other back-to school items) and the $160 billion list on December 15 (includes toys, consumer electronics). He also said the current 25 percent tariff on $250 billion of Chinese goods will increase to 30 percent, starting October 1. Read “US-China Trade War: The Guns of August” by Chad P. Bown.
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13 PETERSON INSTITUTE FOR INTERNATIONAL ECONOMICS TRADE AND INVESTMENT POLICY WATCH BLOG BATTLE #4: AUTOS AS NATIONAL SECURITY THREAT Another National Security Investigation May 23, 2018 The Commerce Department initiates the third national security investigation under Trump into imported autos and parts, following the steel and aluminum cases. Public hearings are scheduled for July 19–20, 2018. Trump is reportedly considering raising tariffs to 25 percent on these products, which a PIIE analysis finds could cost 195,000 American jobs, assuming no exemptions. That number could more than triple if other countries retaliate in-kind. The tariffs would affect $208 billion of imports, not counting auto parts, nearly all from key US allies. Listen to Trade Talks Episode 39: “Car Crash—Trump Sees More National Security Threats” and read “Trump’s Proposed Auto Tariffs Would Throw US Automakers and Workers Under the Bus” by Sherman Robinson, Karen Thierfelder, Jeffrey J. Schott, Euijin Jung, and Zhiyao (Lucy) Lu. “Side Letter” on Autos Reportedly in New US-Mexico Trade Deal to Replace NAFTA August 27, 2018 President Trump and President Enrique Peña Nieto of Mexico announce a preliminary US-Mexico trade agree- ment that would potentially replace the North American Free Trade Agreement (NAFTA). News sources report that a side deal accompanies the trade agreement to give Mexico “insurance” against future potential US national security tariffs on autos. Mexico would still have duty-free access for cars that comply with new rules of origin by voluntarily limiting its auto exports to the United States. During the Oval Office announcement, Trump also threatens to impose tariffs on Canada’s cars. Read “Sweating the Auto Details of Trump’s Trade Deal with Mexico” by Chad P. Bown. USMCA Is Signed with Side Letters November 30, 2018 All three countries sign the US-Mexico-Canada Agreement (USMCA) to replace NAFTA. Canada and Mexico sign side letters aimed at preventing threatened auto tariffs. The deal still needs to be ratified by legislators to take effect. Commerce Department Submits National Security Report to White House February 17, 2019 President Trump has 90 days (until May 18, 2019) to agree or disagree with the findings. He has 15 days after accepting findings of a threat to restrict imports, or he may pursue negotiations and defer new trade actions for up to 180 days while talks proceed. Auto tariffs would mainly target allies such as Japan, Germany, and South Korea. Read “Next Up in the Trade Wars: Autos” by Jeffrey J. Schott. Trump Delays Auto Tariff Decision May 17, 2019 President Trump delays a decision on whether to impose auto tariffs after the US Department of Commerce report recommended “actions to adjust automotive imports” to protect national security. The US Trade Representative
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