Updates concerning Measures by and against the USA
Trump administration initiates Section 232 investigation into Pharmaceutical products and Semiconductors (14 Apr)
On 14th April 2025, the Secretary of Commerce announced the initiation of investigation into imports of pharmaceutical products and semiconductors under Section 232 of the Trade Expansion Act, 1962. As per the administration, these imports are a threat to the national security of USA. The administration has sought public comments, from importers and manufacturers that may be impacted by the potential tariffs on various issues such as the current and projected demand, role of foreign supply chains in meeting the U.S. demand, impact of subsidies by foreign governments and predatory trade practices on the U.S., etc., by 07th May 2025.
Trump administration initiates Section 232 investigation targeting imports of Medium and Heavy-duty Trucks and Truck Parts (22 Apr)
On 22nd April 2025, the Secretary of Commerce initiated an investigation targeting the imports of Medium and Heavy-duty Trucks and Truck Parts under Section 232 of the Trade Expansion Act, 1962. It has been claimed that such imports are a threat to the national security of the country and corrective actions may be necessary to strengthen domestic production. The administration has also sought public comments from importers and manufacturers that may be impacted by the potential tariffs on various issues such as current and projected demand, levels of domestic production, and the role of global supply chains within the trucking sector, by 16th May.
Executive Order issued to address overlapping tariffs on imported articles (29 Apr)
President Trump issued an Executive Order to address the issue of 'cumulative effect' of multiple tariffs imposed in the last two months. In order to avoid cumulative effect of the overlapping tariffs on certain articles, the order sets out the procedure for determining which of the multiple tariffs shall apply to an article which is subject to more than one tariffs actions. The order clarifies which of the different tariffs would be applicable on certain covered articles. The clarification order has been issued with regard to the Automobiles and Automobile Parts tariffs; Aluminum Articles and Derivative Steel Articles tariffs; and Reciprocal tariffs.
Global Updates
Canda initiates WTO dispute regarding duties imposed on automobiles and auto parts by USA (07 Apr)
Canada has requested WTO dispute consultations with USA regarding the additional 25% duty imposed by the it on automobile and automobile parts from Canada. Canada has claimed that the additional 25% duty imposed by USA are inconsistent with USA's obligations under various provisions of the General Agreement on Tariffs and Trade (GATT), 1994.
China initiates WTO dispute regarding reciprocal tariffs imposed by USA (08 Apr)
China has requested WTO dispute consultations with USA regarding 10% additional duty imposed by it on all trading partners as well as 34% additional duty on imports from China. China has claimed that the measures adopted by USA, on the alleged basis of reciprocity and trade balance, are a clear breach of its WTO obligations and commitments and undermines the rules-based multilateral trading system. China has also claimed that the measures are discriminatory and protectionist in nature.
European Union proposes suspension of concessions in response to increased tariffs on aluminium products by USA (16 Apr)
The European Union has notified the proposed suspension of substantially equivalent obligations under GATT 1994, with respect to trade with USA, in the form of an additional ad valorem import duty of 25% on selected products originating in USA, with effect from 16th May 2025. This action has been taken in response to the increased additional customs duties on imports of certain aluminium products and aluminium derivative products from EU to USA.
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