Return-Path: Delivered-To: louk@transocean.com Received: from vps.transocean.com by vps.transocean.com with LMTP id IH2bEne0plqbGQAAInt2oQ for ; Mon, 12 Mar 2018 10:10:15 -0700 Return-path: Envelope-to: louk@transocean.com Delivery-date: Mon, 12 Mar 2018 10:10:15 -0700 Received: from mail188.wdc02.mcdlv.net ([205.201.130.188]:56271) by vps.transocean.com with esmtp (Exim 4.89_1) (envelope-from ) id 1evQxT-0001kK-VX for louk@transocean.com; Mon, 12 Mar 2018 10:10:15 -0700 DKIM-Signature: v=1; a=rsa-sha256; c=relaxed/relaxed; s=k1; d=mail188.wdc02.mcdlv.net; h=Subject:From:Reply-To:To:Date:Message-ID:List-ID:List-Unsubscribe:Sender: Content-Type:MIME-Version; i=no-reply=3Dcargotransinc.com@mail188.wdc02.mcdlv.net; bh=RT2ifdx6trFnA5iDEoUJN9jbxLeTKC75Z06qobP4U78=; b=M05GvErb07W7jnfPhC/oZSljzHrfVrhQwgZZRAL4KGh4PGv9nsWmQ8QND3uWZjv/FNTGVqFk5Y5C V1UAYfzlxJmLloHSjgGMx4S9otue8Uwkn3OnuS+NorNXESRC3vVT5FTEvoULHfa75RIMDUd8y3Tj 1xp3dQJm4mT3PM2Lhpc= Received: from (127.0.0.1) by mail188.wdc02.mcdlv.net id hkqq6g2akecd for ; Mon, 12 Mar 2018 17:07:50 +0000 (envelope-from ) Subject: =?utf-8?Q?New=20Aluminum=20and=20Steel=20Tariffs=3A=20Is=20a=20Trade=20War=20Imminent=3F?= From: =?utf-8?Q?CargoTrans?= Reply-To: =?utf-8?Q?CargoTrans?= To: Date: Mon, 12 Mar 2018 17:07:50 +0000 Message-ID: <500c205f416c387ecaef81e50.b3ec090c86.20180312170647.041f02dc96.8936338f@mail188.wdc02.mcdlv.net> X-Mailer: MailChimp Mailer - **CID041f02dc96b3ec090c86** X-Campaign: mailchimp500c205f416c387ecaef81e50.041f02dc96 X-campaignid: mailchimp500c205f416c387ecaef81e50.041f02dc96 X-Report-Abuse: Please report abuse for this campaign here: http://www.mailchimp.com/abuse/abuse.phtml?u=500c205f416c387ecaef81e50&id=041f02dc96&e=b3ec090c86 X-MC-User: 500c205f416c387ecaef81e50 Feedback-ID: 25693291:25693291.1023581:us3:mc List-ID: 500c205f416c387ecaef81e50mc list <500c205f416c387ecaef81e50.290257.list-id.mcsv.net> X-Accounttype: pd List-Unsubscribe: , Sender: "CargoTrans" x-mcda: FALSE Content-Type: multipart/alternative; boundary="_----------=_MCPart_791873028" MIME-Version: 1.0 X-Spam-Status: No, score=-1.7 X-Spam-Score: -16 X-Spam-Bar: - X-Ham-Report: Spam detection software, running on the system "vps.transocean.com", has NOT identified this incoming email as spam. The original message has been attached to this so you can view it or label similar future email. If you have any questions, see root\@localhost for details. Content preview: Help CargoTrans help Pacer Center by completing this short survey. View this email in your browser (http://mailchi.mp/cargotransinc/spread-the-love-1023581?e=b3ec090c86) http://cargotransinc.com/ https://www.surveymonkey.com/r/9ZVCR7L [...] Content analysis details: (-1.7 points, 3.0 required) pts rule name description ---- ---------------------- -------------------------------------------------- 0.0 URIBL_BLOCKED ADMINISTRATOR NOTICE: The query to URIBL was blocked. See http://wiki.apache.org/spamassassin/DnsBlocklists#dnsbl-block for more information. 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View this email in your browser (http://mailchi.mp/cargotransinc/spread-th= e-love-1023581?e=3Db3ec090c86) http://cargotransinc.com/ https://www.surveymonkey.com/r/9ZVCR7L ** New Aluminum and Steel Tariffs: Is a Trade War Imminent? ------------------------------------------------------------ Well=2C this should get real ugly real fast. The Trump administration has= announced the forthcoming imposition of tariffs on imports of steel and a= luminum=2C with rates of 25 percent and 10 percent=2C respectively. Canada= and Mexico are exempted=2C for now=2C and other countries may receive suc= h favorable treatment as well. Otherwise=2C the new duties will take hold= on March 23=2C 2018. National Security Rational The ostensible reason for the tariffs is national security. Section 232 of= the Trade Expansion Act of 1962 (https://www.law.cornell.edu/uscode/text/= 19/1862) authorizes the President to =E2=80=9Cadjust=E2=80=9D imports that= =E2=80=9Cthreaten to impair the national security=E2=80=9D following an i= nvestigation by the Commerce Department. [1] Commerce initiated Section 2= 32 investigations of steel (primarily=2C flat=2C long=2C pipe and tube=2C= semi-finished=2C and stainless) and aluminum imports in April 2017=2C and= duly reported its findings on January 11=2C 2018. Commerce=E2=80=99s steel report (https://www.commerce.gov/sites/commerce.g= ov/files/the_effect_of_imports_of_steel_on_the_national_security_-_with_re= dactions_-_20180111.pdf) determined that steel=2C and domestic steel produ= ction=2C is essential to national security=2C including =E2=80=9Cdefense r= equirements=E2=80=9D and =E2=80=9CU.S. critical infrastructure sectors inc= luding transportation systems=2C the electric power grid=2C water systems= =2C and energy generation systems.=E2=80=9D The domestic steel industry ha= s been =E2=80=9Cadversely affected=E2=80=9D by lower-priced steel imports= =2C Commerce concluded=2C losing market share and closing production facil= ities. The agency provided several recommended remedies. The aluminum report (https://www.commerce.gov/sites/commerce.gov/files/the= _effect_of_imports_of_aluminum_on_the_national_security_-_with_redactions_= -_20180117.pdf) sets forth a similar analysis=2C likewise concluding that= =E2=80=9Cpresent quantities and circumstance of aluminum imports are =E2= =80=9Cweakening our internal economy=E2=80=9D and threaten to impair the n= ational security as defined in Section 232.=E2=80=9D "Trade Wars Are Good=2C and Easy to Win" Not surprisingly=2C President Trump (https://twitter.com/realDonaldTrump/s= tatus/969525362580484098?ref_src=3Dtwsrc%5Etfw) accepted the findings in t= he Commerce reports and ordered the imposition of additional tariffs throu= gh two Presidential Proclamations (https://www.whitehouse.gov/presidential= -actions/presidential-proclamation-adjusting-imports-steel-united-states/)= issued on March 8=2C 2018. The one concerning steel establishes a 25 perc= ent ad valorem tariff on articles classified in Harmonized Tariff Schedule= subheadings 7206.10 through 7216.50=2C 7216.99 through 7301.10=2C 7302.10= =2C 7302.40 through 7302.90=2C and 7304.10 through 7306.90 from all countr= ies except Canada and Mexico. It also holds open the possibility that othe= r countries will be removed from coverage if =E2=80=9Ca satisfactory alter= native means to address the threat to the national security=E2=80=9D can b= e negotiated with them. The Proclamation on aluminum imports imposes a 10 percent tariff on produc= ts covered in specified HTS subheadings: =E2=80=9C(a) unwrought aluminum (= HTS 7601); (b) aluminum bars=2C rods=2C and profiles (HTS 7604); (c) alumi= num wire (HTS 7605); (d) aluminum plate=2C sheet=2C strip=2C and foil (fla= t rolled products) (HTS 7606 and 7607); (e) aluminum tubes and pipes and t= ube and pipe fitting (HTS 7608 and 7609); and (f) aluminum castings and fo= rgings (HTS 7616.99.51.60 and 7616.99.51.70).=E2=80=9D Here=2C too=2C Cana= da and Mexico are exempted=2C and other countries can negotiate carve-outs= as well. Both Proclamations further provide for product-specific exclusions for cov= ered articles =E2=80=9Cdetermined not to be produced in the United States= in a sufficient and reasonably available amount or of a satisfactory qual= ity=E2=80=9D as well as =E2=80=9Cbased upon specific national security con= siderations.=E2=80=9D The exclusion process entails the filing of a reques= t =E2=80=9Cby a directly affected party located in the United States=E2=80= =9D=2C along with publication of successful applications in the Federal Re= gister. Commerce is directed to publish procedures for exclusion requests= within ten days of the Proclamations. "Everybody Has a Plan until They Get Punched in the Mouth" The mere prospect of the additional quotas brought forth promises of retal= iation from the European Union (https://www.jsonline.com/story/news/2018/0= 3/03/european-union-proposes-tariffs-harley-davidson-motorcycles/391958002= /?from=3Dnew-cookie) and China (https://www.rt.com/business/420794-us-chin= a-trade-war/) . If other countries follow through on their rhetoric=2C U.S= =2E exporters may face restrictions on their market access abroad. Coupled w= ith the higher costs of imports due to the tariffs=2C domestic producers c= ould face a double whammy. A plan designed to save American jobs could wel= l have the opposite effect. The steel and aluminum tariffs are clear breaches of the United States=E2= =80=99 =E2=80=9CMost Favored Nation=E2=80=9D and =E2=80=9Cbound tariff=E2= =80=9D obligations=2C two of the bedrock principles of the WTO. The former= holds that differential tariffs applied to WTO members are impermissible= except in defined circumstances (such as free trade agreements); by letti= ng Canada and Mexico and=2C possibly=2C other countries escape=2C the Proc= lamations establish discriminatory treatment that is inconsistent with the= MFN requirement. The bound tariffs principle holds that WTO members canno= t raise tariff rates above agreed-upon limits=2C with narrow exceptions th= at are not satisfied by the Proclamations. Therefore=2C other countries may=2C with some justification=2C consider th= e new tariffs to be improper and move to impose their own measures in resp= onse. But here=E2=80=99s the thing about retaliation. Under World Trade Or= ganization rules=2C member countries are required to bring dispute resolut= ion proceedings to challenge alleged violations by others. Withdrawal of t= heir own tariff concessions=2C which is what retaliation really means=2C m= ust follow a lengthy process (https://www.wto.org/english/tratop_e/dispu_e= /disp_settlement_cbt_e/c6s10p1_e.htm) to establish that a violation has oc= curred. Immediate=2C unilateral actions outside the WTO process would be a= s violative as the steel and aluminum duties themselves. Moreover=2C there is a real question of whether the tariffs=2C based as th= ey are on documented national security concerns=2C really do qualify as vi= olations of U.S. commitments. The WTO agreements set out =E2=80=9CSecurity= Exceptions (https://www.wto.org/english/res_e/booksp_e/gatt_ai_e/art21_e.= pdf) =E2=80=9D=2C that exclude =E2=80=9Cany action which [a member state]= considers necessary for the protection of its essential security interest= s . . . relating . . . to such traffic in other goods and materials as is= carried on directly or indirectly for the purpose of supplying a military= establishment.=E2=80=9D The Section 232 proceedings arguably suffice to s= hoehorn the tariffs into this exception. Wouldn=E2=80=99t it be ironic if retaliatory duties were inconsistent with= WTO requirements=2C while the initial U.S. steel and aluminum tariffs wer= e not? In the meanwhile=2C United States importers and exporters have to plan for= the financial and legal blowback that will surely follow once these tarif= fs take effect. Source: Posted by George W. Thompson (https://www.gwthompsonlaw.com/author= /editor/) / Articles (https://www.gwthompsonlaw.com/category/export-contro= l/) / international trade tariffs (https://www.gwthompsonlaw.com/tag/inter= national-trade-tariffs/) =2C steel and aluminum imports (https://www.gwtho= mpsonlaw.com/tag/steel-and-aluminum-imports/) =2C steel industry (https://= www.gwthompsonlaw.com/tag/steel-industry/) ________________________________________ [1] The statute requires consideration of =E2=80=9Cdomestic production ne= eded for projected national defense requirements=2C the capacity of domest= ic industries to meet such requirements=2C existing and anticipated availa= bilities of the human resources=2C products=2C raw materials=2C and other= supplies and services essential to the national defense=2C the requiremen= ts of growth of such industries and such supplies and services including t= he investment=2C exploration=2C and development necessary to assure such g= rowth=2C and the importation of goods in terms of their quantities=2C avai= labilities=2C character=2C and use as those affect such industries and the= capacity of the United States to meet national security requirements.=E2= =80=9D This list is not exclusive=2C so Commerce may take other factors in= to account. ** Happy to help. ------------------------------------------------------------ We have team members ready to answer your questions. 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.mcnTextContent=2C.mcnBoxedTextContent= Container .mcnTextContent p{ =09=09=09font-size:14px !important; =09=09=09line-height:150% !important; =09=09} }=09@media only screen and (max-width: 480px){ =09=09#templatePreheader{ =09=09=09display:block !important; =09=09} }=09@media only screen and (max-width: 480px){ =09=09#templatePreheader .mcnTextContent=2C#templatePreheader .mcnTextCont= ent p{ =09=09=09font-size:14px !important; =09=09=09line-height:150% !important; =09=09} }=09@media only screen and (max-width: 480px){ =09=09#templateHeader .mcnTextContent=2C#templateHeader .mcnTextContent p{ =09=09=09font-size:16px !important; =09=09=09line-height:150% !important; =09=09} }=09@media only screen and (max-width: 480px){ =09=09#templateBody .mcnTextContent=2C#templateBody .mcnTextContent p{ =09=09=09font-size:16px !important; =09=09=09line-height:150% !important; =09=09} }=09@media only screen and (max-width: 480px){ =09=09#templateFooter .mcnTextContent=2C#templateFooter .mcnTextContent p{ =09=09=09font-size:14px !important; =09=09=09line-height:150% !important; =09=09} }</style><!--[if !mso]><!--><link href=3D"https://fonts.googleapis.com/cs= s?family=3DOpen+Sans:400=2C400i=2C700=2C700i|Roboto:400=2C400i=2C700=2C700= i" rel=3D"stylesheet"><!--<![endif]--></head> <body style=3D"height: 100%;margin: 0;padding: 0;width: 100%;-ms-text-= size-adjust: 100%;-webkit-text-size-adjust: 100%;background-color: #FAFAFA= ;"> =09=09<!-- --> =09=09<!--[if !gte mso 9]><!----><span class=3D"mcnPreviewText" style=3D"= display:none; font-size:0px; line-height:0px; max-height:0px; max-width:0p= x; opacity:0; overflow:hidden; visibility:hidden; mso-hide:all;">Help Carg= oTrans help Pacer Center by completing this short survey.</span><!--<![en= dif]--> =09=09<!-- --> <center> <table align=3D"center" border=3D"0" cellpadding=3D"0" cellspa= cing=3D"0" height=3D"100%" width=3D"100%" id=3D"bodyTable" style=3D"border= -collapse: collapse;mso-table-lspace: 0pt;mso-table-rspace: 0pt;-ms-text-s= ize-adjust: 100%;-webkit-text-size-adjust: 100%;height: 100%;margin: 0;pad= ding: 0;width: 100%;background-color: #FAFAFA;"> <tr> <td align=3D"center" valign=3D"top" id=3D"bodyCell" st= yle=3D"mso-line-height-rule: exactly;-ms-text-size-adjust: 100%;-webkit-te= xt-size-adjust: 100%;height: 100%;margin: 0;padding: 10px;width: 100%;bord= er-top: 0;"> <!-- BEGIN TEMPLATE // --> =09=09=09=09=09=09<!--[if (gte mso 9)|(IE)]> =09=09=09=09=09=09<table align=3D"center" border=3D"0" cellspacing=3D"0" c= ellpadding=3D"0" width=3D"600" style=3D"width:600px;"> =09=09=09=09=09=09<tr> =09=09=09=09=09=09<td align=3D"center" valign=3D"top" width=3D"600" style= =3D"width:600px;"> =09=09=09=09=09=09<![endif]--> <table border=3D"0" cellpadding=3D"0" cellspacing= =3D"0" width=3D"100%" class=3D"templateContainer" style=3D"border-collapse= : collapse;mso-table-lspace: 0pt;mso-table-rspace: 0pt;-ms-text-size-adjus= t: 100%;-webkit-text-size-adjust: 100%;border: 0;max-width: 600px !importa= nt;"> <tr> <td valign=3D"top" id=3D"templatePreheader= " style=3D"background:#FAFAFA none no-repeat center/cover;mso-line-height-= rule: exactly;-ms-text-size-adjust: 100%;-webkit-text-size-adjust: 100%;ba= ckground-color: #FAFAFA;background-image: none;background-repeat: no-repea= t;background-position: center;background-size: cover;border-top: 0;border-= bottom: 0;padding-top: 9px;padding-bottom: 9px;"><table border=3D"0" cellp= adding=3D"0" cellspacing=3D"0" width=3D"100%" class=3D"mcnTextBlock" style= =3D"min-width: 100%;border-collapse: collapse;mso-table-lspace: 0pt;mso-ta= ble-rspace: 0pt;-ms-text-size-adjust: 100%;-webkit-text-size-adjust: 100%;= "> <tbody class=3D"mcnTextBlockOuter"> <tr> <td valign=3D"top" class=3D"mcnTextBlockInner" style=3D"paddin= g-top: 9px;mso-line-height-rule: exactly;-ms-text-size-adjust: 100%;-webki= t-text-size-adjust: 100%;"> =09<!--[if mso]> =09=09=09=09<table align=3D"left" border=3D"0" cellspacing=3D"0" cellpaddi= ng=3D"0" width=3D"100%" style=3D"width:100%;"> =09=09=09=09<tr> =09=09=09=09<![endif]--> =09=09=09 =09=09=09=09<!--[if mso]> =09=09=09=09<td valign=3D"top" width=3D"600" style=3D"width:600px;"> =09=09=09=09<![endif]--> <table align=3D"left" border=3D"0" cellpadding=3D"0" cells= pacing=3D"0" style=3D"max-width: 100%;min-width: 100%;border-collapse: col= lapse;mso-table-lspace: 0pt;mso-table-rspace: 0pt;-ms-text-size-adjust: 10= 0%;-webkit-text-size-adjust: 100%;" width=3D"100%" class=3D"mcnTextContent= Container"> <tbody><tr> <td valign=3D"top" class=3D"mcnTextContent" style= =3D"padding: 0px 18px 9px;text-align: center;mso-line-height-rule: exactly= ;-ms-text-size-adjust: 100%;-webkit-text-size-adjust: 100%;word-break: bre= ak-word;color: #656565;font-family: Helvetica;font-size: 12px;line-height:= 150%;"> <a href=3D"http://mailchi.mp/cargotransinc/spr= ead-the-love-1023581?e=3Db3ec090c86" target=3D"_blank" style=3D"mso-line-hei= ght-rule: exactly;-ms-text-size-adjust: 100%;-webkit-text-size-adjust: 100= 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class=3D"mcnImageBlockOuter"> <tr> <td valign=3D"top" style=3D"padding: 9px;mso-line-height-r= ule: exactly;-ms-text-size-adjust: 100%;-webkit-text-size-adjust: 100%;" c= lass=3D"mcnImageBlockInner"> <table align=3D"left" width=3D"100%" border=3D"0" cell= padding=3D"0" cellspacing=3D"0" class=3D"mcnImageContentContainer" style= =3D"min-width: 100%;border-collapse: collapse;mso-table-lspace: 0pt;mso-ta= ble-rspace: 0pt;-ms-text-size-adjust: 100%;-webkit-text-size-adjust: 100%;= "> <tbody><tr> <td class=3D"mcnImageContent" valign=3D"top" s= tyle=3D"padding-right: 9px;padding-left: 9px;padding-top: 0;padding-bottom= : 0;text-align: center;mso-line-height-rule: exactly;-ms-text-size-adjust:= 100%;-webkit-text-size-adjust: 100%;"> <a href=3D"https://cargotransinc.us3.l= ist-manage.com/track/click?u=3D500c205f416c387ecaef81e50&id=3D812e17135e&e= =3Db3ec090c86" title=3D"" class=3D"" target=3D"_blank" style=3D"mso-line-= height-rule: exactly;-ms-text-size-adjust: 100%;-webkit-text-size-adjust:= 100%;"> <img align=3D"center" alt=3D"Cargo= Trans" src=3D"https://gallery.mailchimp.com/500c205f416c387ecaef81e50/imag= es/20a6c740-4a4d-47b0-a8aa-dde04afb03c5.jpg" width=3D"564" style=3D"max-wi= dth: 600px;padding-bottom: 0;display: inline !important;vertical-align: bo= ttom;border: 0;height: auto;outline: none;text-decoration: none;-ms-interp= olation-mode: bicubic;" class=3D"mcnImage"> </a> </td> </tr> </tbody></table> </td> </tr> </tbody> </table><table border=3D"0" cellpadding=3D"0" cellspacing=3D"0" width=3D"1= 00%" class=3D"mcnImageBlock" style=3D"min-width: 100%;border-collapse: col= lapse;mso-table-lspace: 0pt;mso-table-rspace: 0pt;-ms-text-size-adjust: 10= 0%;-webkit-text-size-adjust: 100%;"> <tbody class=3D"mcnImageBlockOuter"> <tr> <td valign=3D"top" style=3D"padding: 0px;mso-line-height-r= ule: exactly;-ms-text-size-adjust: 100%;-webkit-text-size-adjust: 100%;" c= lass=3D"mcnImageBlockInner"> <table align=3D"left" width=3D"100%" border=3D"0" cell= padding=3D"0" cellspacing=3D"0" class=3D"mcnImageContentContainer" style= =3D"min-width: 100%;border-collapse: collapse;mso-table-lspace: 0pt;mso-ta= ble-rspace: 0pt;-ms-text-size-adjust: 100%;-webkit-text-size-adjust: 100%;= "> <tbody><tr> <td class=3D"mcnImageContent" valign=3D"top" s= tyle=3D"padding-right: 0px;padding-left: 0px;padding-top: 0;padding-bottom= : 0;text-align: center;mso-line-height-rule: exactly;-ms-text-size-adjust:= 100%;-webkit-text-size-adjust: 100%;"> <a href=3D"https://cargotransinc.us3.l= ist-manage.com/track/click?u=3D500c205f416c387ecaef81e50&id=3D2acb1ef602&e= =3Db3ec090c86" title=3D"" class=3D"" target=3D"_blank" style=3D"mso-line-= height-rule: exactly;-ms-text-size-adjust: 100%;-webkit-text-size-adjust:= 100%;"> <img align=3D"center" alt=3D"Cargo= Trans" src=3D"https://gallery.mailchimp.com/500c205f416c387ecaef81e50/ima= ges/fe3e66e7-edc5-4775-bfdc-b198e5b0f002.jpg" width=3D"600" style=3D"max-w= idth: 873px;padding-bottom: 0;display: inline !important;vertical-align: b= ottom;border: 0;height: auto;outline: none;text-decoration: none;-ms-inter= polation-mode: bicubic;" class=3D"mcnImage"> </a> </td> </tr> </tbody></table> </td> </tr> </tbody> </table></td> </tr> <tr> <td valign=3D"top" id=3D"templateBody" sty= le=3D"background:#ffffff none no-repeat center/cover;mso-line-height-rule:= exactly;-ms-text-size-adjust: 100%;-webkit-text-size-adjust: 100%;backgro= und-color: #ffffff;background-image: none;background-repeat: no-repeat;bac= kground-position: center;background-size: cover;border-top: 0;border-botto= m: 2px solid #EAEAEA;padding-top: 0;padding-bottom: 9px;"><table border=3D= "0" cellpadding=3D"0" cellspacing=3D"0" width=3D"100%" class=3D"mcnDivider= Block" style=3D"min-width: 100%;border-collapse: collapse;mso-table-lspace= : 0pt;mso-table-rspace: 0pt;-ms-text-size-adjust: 100%;-webkit-text-size-a= djust: 100%;table-layout: fixed !important;"> <tbody class=3D"mcnDividerBlockOuter"> <tr> <td class=3D"mcnDividerBlockInner" style=3D"min-width: 100%;pa= dding: 5px 18px;mso-line-height-rule: exactly;-ms-text-size-adjust: 100%;-= webkit-text-size-adjust: 100%;"> <table class=3D"mcnDividerContent" border=3D"0" cellpaddin= g=3D"0" cellspacing=3D"0" width=3D"100%" style=3D"min-width: 100%;border-c= ollapse: collapse;mso-table-lspace: 0pt;mso-table-rspace: 0pt;-ms-text-siz= e-adjust: 100%;-webkit-text-size-adjust: 100%;"> <tbody><tr> <td style=3D"mso-line-height-rule: exactly;-ms-tex= t-size-adjust: 100%;-webkit-text-size-adjust: 100%;"> <span></span> </td> </tr> </tbody></table> <!-- <td class=3D"mcnDividerBlockInner" style=3D"padding: 18px;= "> <hr class=3D"mcnDividerContent" style=3D"border-bottom-col= or:none; border-left-color:none; border-right-color:none; border-bottom-wi= dth:0; border-left-width:0; border-right-width:0; margin-top:0; margin-rig= ht:0; margin-bottom:0; margin-left:0;" /> --> </td> </tr> </tbody> </table><table border=3D"0" cellpadding=3D"0" cellspacing=3D"0" width=3D"1= 00%" class=3D"mcnTextBlock" style=3D"min-width: 100%;border-collapse: coll= apse;mso-table-lspace: 0pt;mso-table-rspace: 0pt;-ms-text-size-adjust: 100= %;-webkit-text-size-adjust: 100%;"> <tbody class=3D"mcnTextBlockOuter"> <tr> <td valign=3D"top" class=3D"mcnTextBlockInner" style=3D"paddin= g-top: 9px;mso-line-height-rule: exactly;-ms-text-size-adjust: 100%;-webki= t-text-size-adjust: 100%;"> =09<!--[if mso]> =09=09=09=09<table align=3D"left" border=3D"0" cellspacing=3D"0" cellpaddi= ng=3D"0" width=3D"100%" style=3D"width:100%;"> =09=09=09=09<tr> =09=09=09=09<![endif]--> =09=09=09 =09=09=09=09<!--[if mso]> =09=09=09=09<td valign=3D"top" width=3D"600" style=3D"width:600px;"> =09=09=09=09<![endif]--> <table align=3D"left" border=3D"0" cellpadding=3D"0" cells= pacing=3D"0" style=3D"max-width: 100%;min-width: 100%;border-collapse: col= lapse;mso-table-lspace: 0pt;mso-table-rspace: 0pt;-ms-text-size-adjust: 10= 0%;-webkit-text-size-adjust: 100%;" width=3D"100%" class=3D"mcnTextContent= Container"> <tbody><tr> <td valign=3D"top" class=3D"mcnTextContent" style= =3D"padding-top: 0;padding-right: 18px;padding-bottom: 9px;padding-left: 1= 8px;mso-line-height-rule: exactly;-ms-text-size-adjust: 100%;-webkit-text-= size-adjust: 100%;word-break: break-word;color: #808080;font-family: 'Robo= to'=2C 'Helvetica Neue'=2C Helvetica=2C Arial=2C sans-serif;font-size: 16p= x;line-height: 150%;text-align: left;"> <h2 style=3D"display: block;margin: 0;padding:= 0;color: #0072bc;font-family: 'Open Sans'=2C 'Helvetica Neue'=2C Helvetic= a=2C Arial=2C sans-serif;font-size: 22px;font-style: normal;font-weight: b= old;line-height: 125%;letter-spacing: normal;text-align: left;"><span styl= e=3D"font-size:26px">New Aluminum and Steel Tariffs:<br> Is a Trade War Imminent?</span></h2> </td> </tr> </tbody></table> =09=09=09=09<!--[if mso]> =09=09=09=09</td> =09=09=09=09<![endif]--> =09=09=09=09<!--[if mso]> =09=09=09=09</tr> =09=09=09=09</table> =09=09=09=09<![endif]--> </td> </tr> </tbody> </table><table border=3D"0" cellpadding=3D"0" cellspacing=3D"0" width=3D"1= 00%" class=3D"mcnTextBlock" style=3D"min-width: 100%;border-collapse: coll= apse;mso-table-lspace: 0pt;mso-table-rspace: 0pt;-ms-text-size-adjust: 100= %;-webkit-text-size-adjust: 100%;"> <tbody class=3D"mcnTextBlockOuter"> <tr> <td valign=3D"top" class=3D"mcnTextBlockInner" style=3D"paddin= g-top: 9px;mso-line-height-rule: exactly;-ms-text-size-adjust: 100%;-webki= t-text-size-adjust: 100%;"> =09<!--[if mso]> =09=09=09=09<table align=3D"left" border=3D"0" cellspacing=3D"0" cellpaddi= ng=3D"0" width=3D"100%" style=3D"width:100%;"> =09=09=09=09<tr> =09=09=09=09<![endif]--> =09=09=09 =09=09=09=09<!--[if mso]> =09=09=09=09<td valign=3D"top" width=3D"600" style=3D"width:600px;"> =09=09=09=09<![endif]--> <table align=3D"left" border=3D"0" cellpadding=3D"0" cells= pacing=3D"0" style=3D"max-width: 100%;min-width: 100%;border-collapse: col= lapse;mso-table-lspace: 0pt;mso-table-rspace: 0pt;-ms-text-size-adjust: 10= 0%;-webkit-text-size-adjust: 100%;" width=3D"100%" class=3D"mcnTextContent= Container"> <tbody><tr> <td valign=3D"top" class=3D"mcnTextContent" style= =3D"padding-top: 0;padding-right: 18px;padding-bottom: 9px;padding-left: 1= 8px;mso-line-height-rule: exactly;-ms-text-size-adjust: 100%;-webkit-text-= size-adjust: 100%;word-break: break-word;color: #808080;font-family: 'Robo= to'=2C 'Helvetica Neue'=2C Helvetica=2C Arial=2C sans-serif;font-size: 16p= x;line-height: 150%;text-align: left;"> <p style=3D"text-align: left;margin: 10px 0;pa= dding: 0;mso-line-height-rule: exactly;-ms-text-size-adjust: 100%;-webkit-= text-size-adjust: 100%;color: #808080;font-family: 'Roboto'=2C 'Helvetica= Neue'=2C Helvetica=2C Arial=2C sans-serif;font-size: 16px;line-height: 15= 0%;">Well=2C this should get real ugly real fast. The Trump administration= has announced the forthcoming imposition of tariffs on imports of steel a= nd aluminum=2C with rates of 25 percent and 10 percent=2C respectively. Ca= nada and Mexico are exempted=2C for now=2C and other countries may receive= such favorable treatment as well. Otherwise=2C the new duties will take h= old on March 23=2C 2018.<br> <br> <span style=3D"color:#0072BC"><strong>National Security Rational</strong><= /span><br> <br> The ostensible reason for the tariffs is national security. Section 232 of= the <a href=3D"https://cargotransinc.us3.list-manage.com/track/click?u=3D= 500c205f416c387ecaef81e50&id=3Dee5984982c&e=3Db3ec090c86" target=3D"_blan= k" style=3D"mso-line-height-rule: exactly;-ms-text-size-adjust: 100%;-webk= it-text-size-adjust: 100%;color: #0072bc;font-weight: normal;text-decorati= on: underline;">Trade Expansion Act of 1962</a> authorizes the President t= o =E2=80=9Cadjust=E2=80=9D imports that =E2=80=9Cthreaten to impair the na= tional security=E2=80=9D following an investigation by the Commerce Depart= ment. <strong>[1]</strong> Commerce initiated Section 232 investigations= of steel (primarily=2C flat=2C long=2C pipe and tube=2C semi-finished=2C= and stainless) and aluminum imports in April 2017=2C and duly reported it= s findings on January 11=2C 2018.<br> <br> Commerce=E2=80=99s <a href=3D"https://cargotransinc.us3.list-manage.com/tr= ack/click?u=3D500c205f416c387ecaef81e50&id=3D272ecc3ebe&e=3Db3ec090c86" t= arget=3D"_blank" style=3D"mso-line-height-rule: exactly;-ms-text-size-adju= st: 100%;-webkit-text-size-adjust: 100%;color: #0072bc;font-weight: normal= ;text-decoration: underline;">steel report</a> determined that steel=2C an= d domestic steel production=2C is essential to national security=2C includ= ing =E2=80=9Cdefense requirements=E2=80=9D and =E2=80=9CU.S. critical infr= astructure sectors including transportation systems=2C the electric power= grid=2C water systems=2C and energy generation systems.=E2=80=9D The dome= stic steel industry has been =E2=80=9Cadversely affected=E2=80=9D by lower= -priced steel imports=2C Commerce concluded=2C losing market share and clo= sing production facilities. The agency provided several recommended remedi= es.<br> <br> The <a href=3D"https://cargotransinc.us3.list-manage.com/track/click?u=3D5= 00c205f416c387ecaef81e50&id=3D5d8017b6c8&e=3Db3ec090c86" target=3D"_blank= " style=3D"mso-line-height-rule: exactly;-ms-text-size-adjust: 100%;-webki= t-text-size-adjust: 100%;color: #0072bc;font-weight: normal;text-decoratio= n: underline;">aluminum report</a> sets forth a similar analysis=2C likewi= se concluding that =E2=80=9Cpresent quantities and circumstance of aluminu= m imports are =E2=80=9Cweakening our internal economy=E2=80=9D and threate= n to impair the national security as defined in Section 232.=E2=80=9D<br> <br> <span style=3D"color:#0072BC"><strong>"Trade Wars Are Good=2C and Easy to= Win"</strong></span><br> <br> Not surprisingly=2C <a href=3D"https://cargotransinc.us3.list-manage.com/t= rack/click?u=3D500c205f416c387ecaef81e50&id=3Ddf1f8de121&e=3Db3ec090c86"= target=3D"_blank" style=3D"mso-line-height-rule: exactly;-ms-text-size-ad= just: 100%;-webkit-text-size-adjust: 100%;color: #0072bc;font-weight: norm= al;text-decoration: underline;">President Trump</a> accepted the findings= in the Commerce reports and ordered the imposition of additional tariffs= through two <a href=3D"https://cargotransinc.us3.list-manage.com/track/cl= ick?u=3D500c205f416c387ecaef81e50&id=3D587d3ea1c0&e=3Db3ec090c86" target= =3D"_blank" style=3D"mso-line-height-rule: exactly;-ms-text-size-adjust: 1= 00%;-webkit-text-size-adjust: 100%;color: #0072bc;font-weight: normal;text= -decoration: underline;">Presidential Proclamations</a> issued on March 8= =2C 2018. The one concerning steel establishes a 25 percent ad valorem tar= iff on articles classified in Harmonized Tariff Schedule subheadings 7206.= 10 through 7216.50=2C 7216.99 through 7301.10=2C 7302.10=2C 7302.40 throug= h 7302.90=2C and 7304.10 through 7306.90 from all countries except Canada= and Mexico. It also holds open the possibility that other countries will= be removed from coverage if =E2=80=9Ca satisfactory alternative means to= address the threat to the national security=E2=80=9D can be negotiated wi= th them.<br> <br> The Proclamation on aluminum imports imposes a 10 percent tariff on produc= ts covered in specified HTS subheadings: =E2=80=9C(a) unwrought aluminum (= HTS 7601); (b) aluminum bars=2C rods=2C and profiles (HTS 7604); (c) alumi= num wire (HTS 7605); (d) aluminum plate=2C sheet=2C strip=2C and foil (fla= t rolled products) (HTS 7606 and 7607); (e) aluminum tubes and pipes and t= ube and pipe fitting (HTS 7608 and 7609); and (f) aluminum castings and fo= rgings (HTS 7616.99.51.60 and 7616.99.51.70).=E2=80=9D Here=2C too=2C Cana= da and Mexico are exempted=2C and other countries can negotiate carve-outs= as well.<br> <br> Both Proclamations further provide for product-specific exclusions for cov= ered articles =E2=80=9Cdetermined not to be produced in the United States= in a sufficient and reasonably available amount or of a satisfactory qual= ity=E2=80=9D as well as =E2=80=9Cbased upon specific national security con= siderations.=E2=80=9D The exclusion process entails the filing of a reques= t =E2=80=9Cby a directly affected party located in the United States=E2=80= =9D=2C along with publication of successful applications in the Federal Re= gister. Commerce is directed to publish procedures for exclusion requests= within ten days of the Proclamations.<br> <br> <span style=3D"color:#0072BC"><strong>"Everybody Has a Plan until They Get= Punched in the Mouth"</strong></span><br> <br> The mere prospect of the additional quotas brought forth promises of retal= iation from the <a href=3D"https://cargotransinc.us3.list-manage.com/track= /click?u=3D500c205f416c387ecaef81e50&id=3D6e1e27223a&e=3Db3ec090c86" targ= et=3D"_blank" style=3D"mso-line-height-rule: exactly;-ms-text-size-adjust:= 100%;-webkit-text-size-adjust: 100%;color: #0072bc;font-weight: normal;te= xt-decoration: underline;">European Union</a> and <a href=3D"https://cargo= transinc.us3.list-manage.com/track/click?u=3D500c205f416c387ecaef81e50&id= =3Dbe14e727bd&e=3Db3ec090c86" target=3D"_blank" style=3D"mso-line-height-= rule: exactly;-ms-text-size-adjust: 100%;-webkit-text-size-adjust: 100%;co= lor: #0072bc;font-weight: normal;text-decoration: underline;">China</a>. I= f other countries follow through on their rhetoric=2C U.S. exporters may f= ace restrictions on their market access abroad. Coupled with the higher co= sts of imports due to the tariffs=2C domestic producers could face a doubl= e whammy. A plan designed to save American jobs could well have the opposi= te effect.<br> <br> The steel and aluminum tariffs are clear breaches of the United States=E2= =80=99 =E2=80=9CMost Favored Nation=E2=80=9D and =E2=80=9Cbound tariff=E2= =80=9D obligations=2C two of the bedrock principles of the WTO. The former= holds that differential tariffs applied to WTO members are impermissible= except in defined circumstances (such as free trade agreements); by letti= ng Canada and Mexico and=2C possibly=2C other countries escape=2C the Proc= lamations establish discriminatory treatment that is inconsistent with the= MFN requirement. The bound tariffs principle holds that WTO members canno= t raise tariff rates above agreed-upon limits=2C with narrow exceptions th= at are not satisfied by the Proclamations.<br> <br> Therefore=2C other countries may=2C with some justification=2C consider th= e new tariffs to be improper and move to impose their own measures in resp= onse. But here=E2=80=99s the thing about retaliation. Under World Trade Or= ganization rules=2C member countries are required to bring dispute resolut= ion proceedings to challenge alleged violations by others. Withdrawal of t= heir own tariff concessions=2C which is what retaliation really means=2C m= ust follow a <a href=3D"https://cargotransinc.us3.list-manage.com/track/cl= ick?u=3D500c205f416c387ecaef81e50&id=3De004574985&e=3Db3ec090c86" target= =3D"_blank" style=3D"mso-line-height-rule: exactly;-ms-text-size-adjust: 1= 00%;-webkit-text-size-adjust: 100%;color: #0072bc;font-weight: normal;text= -decoration: underline;">lengthy process</a> to establish that a violation= has occurred. Immediate=2C unilateral actions outside the WTO process wou= ld be as violative as the steel and aluminum duties themselves.<br> <br> Moreover=2C there is a real question of whether the tariffs=2C based as th= ey are on documented national security concerns=2C really do qualify as vi= olations of U.S. commitments. The WTO agreements set out =E2=80=9C<a href= =3D"https://cargotransinc.us3.list-manage.com/track/click?u=3D500c205f416c= 387ecaef81e50&id=3D3fce123e03&e=3Db3ec090c86" target=3D"_blank" style=3D"= mso-line-height-rule: exactly;-ms-text-size-adjust: 100%;-webkit-text-size= -adjust: 100%;color: #0072bc;font-weight: normal;text-decoration: underlin= e;">Security Exceptions</a>=E2=80=9D=2C that exclude =E2=80=9Cany action w= hich [a member state] considers necessary for the protection of its essen= tial security interests . . . relating . . . to such traffic in other good= s and materials as is carried on directly or indirectly for the purpose of= supplying a military establishment.=E2=80=9D The Section 232 proceedings= arguably suffice to shoehorn the tariffs into this exception.<br> <br> Wouldn=E2=80=99t it be ironic if retaliatory duties were inconsistent with= WTO requirements=2C while the initial U.S. steel and aluminum tariffs wer= e not?<br> <br> In the meanwhile=2C United States importers and exporters have to plan for= the financial and legal blowback that will surely follow once these tarif= fs take effect.<br> <br> <strong>Source: </strong>Posted by <a href=3D"https://cargotransinc.us3.li= st-manage.com/track/click?u=3D500c205f416c387ecaef81e50&id=3D4ec354e4fa&e= =3Db3ec090c86" target=3D"_blank" style=3D"mso-line-height-rule: exactly;-= ms-text-size-adjust: 100%;-webkit-text-size-adjust: 100%;color: #0072bc;fo= nt-weight: normal;text-decoration: underline;">George W. Thompson</a> / <a= href=3D"https://cargotransinc.us3.list-manage.com/track/click?u=3D500c205= f416c387ecaef81e50&id=3D73ce69d154&e=3Db3ec090c86" target=3D"_blank" styl= e=3D"mso-line-height-rule: exactly;-ms-text-size-adjust: 100%;-webkit-text= -size-adjust: 100%;color: #0072bc;font-weight: normal;text-decoration: und= erline;">Articles</a> / <a href=3D"https://cargotransinc.us3.list-manage.c= om/track/click?u=3D500c205f416c387ecaef81e50&id=3D3550bf5511&e=3D= b3ec090c86" target=3D"_blank" style=3D"mso-line-height-rule: exactly;-ms-text-size= -adjust: 100%;-webkit-text-size-adjust: 100%;color: #0072bc;font-weight: n= ormal;text-decoration: underline;">international trade tariffs</a>=2C <a h= ref=3D"https://cargotransinc.us3.list-manage.com/track/click?u=3D500c205f4= 16c387ecaef81e50&id=3Db8a0c677a2&e=3Db3ec090c86" target=3D"_blank" style= =3D"mso-line-height-rule: exactly;-ms-text-size-adjust: 100%;-webkit-text-= size-adjust: 100%;color: #0072bc;font-weight: normal;text-decoration: unde= rline;">steel and aluminum imports</a>=2C <a href=3D"https://cargotransinc= =2Eus3.list-manage.com/track/click?u=3D500c205f416c387ecaef81e50&id=3D9696b8= 3bca&e=3Db3ec090c86" target=3D"_blank" style=3D"mso-line-height-rule: exa= ctly;-ms-text-size-adjust: 100%;-webkit-text-size-adjust: 100%;color: #007= 2bc;font-weight: normal;text-decoration: underline;">steel industry</a><br= > <br> ________________________________________<br> <span style=3D"font-size:14px"><strong>[1]</strong> The statute requires= consideration of =E2=80=9Cdomestic production needed for projected nation= al defense requirements=2C the capacity of domestic industries to meet suc= h requirements=2C existing and anticipated availabilities of the human res= ources=2C products=2C raw materials=2C and other supplies and services ess= ential to the national defense=2C the requirements of growth of such indus= tries and such supplies and services including the investment=2C explorati= on=2C and development necessary to assure such growth=2C and the importati= on of goods in terms of their quantities=2C availabilities=2C character=2C= and use as those affect such industries and the capacity of the United St= ates to meet national security requirements.=E2=80=9D This list is not exc= lusive=2C so Commerce may take other factors into account.</span></p> </td> </tr> </tbody></table> =09=09=09=09<!--[if mso]> =09=09=09=09</td> =09=09=09=09<![endif]--> =09=09=09=09<!--[if mso]> =09=09=09=09</tr> =09=09=09=09</table> =09=09=09=09<![endif]--> </td> </tr> </tbody> </table><table border=3D"0" cellpadding=3D"0" cellspacing=3D"0" width=3D"1= 00%" class=3D"mcnDividerBlock" style=3D"min-width: 100%;border-collapse: c= ollapse;mso-table-lspace: 0pt;mso-table-rspace: 0pt;-ms-text-size-adjust:= 100%;-webkit-text-size-adjust: 100%;table-layout: fixed !important;"> <tbody class=3D"mcnDividerBlockOuter"> <tr> <td class=3D"mcnDividerBlockInner" style=3D"min-width: 100%;pa= dding: 5px 18px;mso-line-height-rule: exactly;-ms-text-size-adjust: 100%;-= webkit-text-size-adjust: 100%;"> <table class=3D"mcnDividerContent" border=3D"0" cellpaddin= g=3D"0" cellspacing=3D"0" width=3D"100%" style=3D"min-width: 100%;border-c= ollapse: collapse;mso-table-lspace: 0pt;mso-table-rspace: 0pt;-ms-text-siz= e-adjust: 100%;-webkit-text-size-adjust: 100%;"> <tbody><tr> <td style=3D"mso-line-height-rule: exactly;-ms-tex= t-size-adjust: 100%;-webkit-text-size-adjust: 100%;"> <span></span> </td> </tr> </tbody></table> <!-- <td class=3D"mcnDividerBlockInner" style=3D"padding: 18px;= "> <hr class=3D"mcnDividerContent" style=3D"border-bottom-col= or:none; 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