Trade Policy
Torres Trade Law assists clients with policy related issues and our practice concentrates on trade and national security matters. We advise governments and private sector clients on a wide variety of matters before the various U.S. federal agencies administering trade, national security, and foreign policy.
Our group’s competitive advantage is based on our significant experience in the complexities of the regulations affecting trade and national security such as customs laws, U.S. economic sanctions, export controls, and cybersecurity to name a few. Our attorneys have developed expertise in numerous industries with recurring trade policy concerns such as defense, aerospace, steel, and agriculture.
We can assist in the following areas:
- Advocating a company’s interests before various federal government agencies
- Analysis for U.S. policymakers regarding trade and national security laws and regulations
- Preparing for trade policy changes and identification of risks and opportunities
- Briefings and consultations with Executive Branch officials, members of Congress, embassies, and international organizations
- Assistance with legislative matters regarding trade remedies and investment
INSIGHTS
U.S. Implements New Tariffs on Canada, Mexico, and China
Beginning just after midnight on March 4, 2025, the United States implemented a 25% tariff on imports from Canada and Mexico (except Canadian “energy resources,” which are subject to a 10% tariff), and increased tariffs on China from 10% to 20%. These tariffs are implemented under the International Emergency Economic Powers Act (IEEPA) pursuant to national emergencies declared by President Trump related to the influx of illegal immigrants and drugs, particularly fentanyl, into the United States. For additional background on the initial actions, please see our previous trade alert, Tariffs on Mexico and Canada Delayed; China Retaliates Against 10% Tariff.
U.S. Imposes Tariffs on Imports from Canada and China Beginning February 4; Mexican President Announces One Month Implementation Delay
On February 1, 2025, President Trump announced significant new tariffs on imports from Mexico, Canada, and China, set to take effect on February 4, 2025. The tariffs were announced via three separate Executive Orders (EOs) and are imposed on Canada to “Address the Flow of Illicit Drugs Across [the] Norther Border,” on Mexico to “Address the Situation at [the] Southern Border,” and on China to “Address the Synthetic Opioid Supply Chain in . . . China.” Importantly, unlike tariffs on China implemented under Section 301 of the Trade Act of 1974 (Section 301) in the first Trump administration, the new tariffs are imposed under the International Emergency Economic Powers Act (IEEPA) and are pursuant to a national emergency declared by President Trump.
USTR Provides Detail on Products Subject to Additional Section 301 (“China”) Tariffs
On May 22, 2024, the United States Trade Representative (“USTR”) announced the publication of a Federal Register Notice (“the FRN”) setting forth additional and increased Section 301 tariffs for specific Harmonized Tariff Schedule of the U.S. (“HTSUS”) subheadings. In addition, the FRN provides details on products subject to potential exclusions from the tariffs and establishes a period for interested parties to provide comments on the tariff modifications and potential exclusions.
U.S. Trade Representative Initiates Section 301 Investigation of China’s Attempts to Dominate Maritime Industries
On April 17, 2024, the United States Trade Representative (“USTR”) initiated an investigation pursuant to Section 301 of the Trade Act of 1974 (“Section 301”) regarding China’s acts, policies, and practices to dominate the maritime, logistics, and shipbuilding sector. The investigation was initiated following the filing of a petition (“Petition”) by several domestic labor unions (“Petitioners”) representing these industries. The USTR encourages interested parties to submit comments on any issue covered by the investigation. Comments are due by May 22, 2024.
Trade Alert: Section 301 Tariff Exclusion Extension Public Comment Docket Opens Today
On December 26, 2023, the Office of the United States Trade Representative (“USTR”) announced the extension to May 31, 2024, of all current exclusions from Section 301 tariffs on Chinese-origin goods. The extended exclusions include 77 COVID-related exclusions and 352 previously reinstated exclusions.
Section 321 De Minimis Imports Can Pose Compliance Risks
In 2016, the United States implemented legislation revising 19 U.S.C. § 1321 (“Section 321”) and thereby increasing the de minimis amount for imports into the United States from $200 to $800, meaning an importer is not required to pay duties if the merchandise has a fair market retail value at or below $800. In 2018, the U.S. began imposing a 25% tariff on most goods from China. The convergence of these two issues – the ability to import duty-free under $800 and the steep duties applicable to Chinese goods – led many vendors of Chinese merchandise to take advantage of Section 321 de minimis treatment for certain imports.