Tariffs

Introduction

The Trump Administration’s implementation of significant and widespread tariffs – and the potential for additional and farther-reaching tariffs – represent more than just a trade challenge.  For companies engaged in international commerce, the uncertainty created by these measures increases the risk of commercial disputes.  Among other things, tariffs can…

Continue Reading Trump 2.0 Tariffs and Commercial Disputes:  Key Questions to Consider

On 12 March, the European Commission responded to the imposition of new U.S. tariffs on EU steel and aluminum imports.  The Commission pledged to implement “swift and proportionate countermeasures on U.S. imports into the EU,” signaling a firm stance while leaving the door open for future negotiations.

Announced Countermeasures under the Enforcement Regulation

The EU’s response is made up of two measures:

  1. The reinstatement of 2018 and 2020 EU additional ad valorem duties on certain U.S. imports (“Old Rebalancing Measures”):  In 2018, the first Trump Administration introduced 25% and 10% tariffs on EU steel and aluminum exports, respectively, under Section 232 of the Trade Expansion Act of 1962.  As a response, the EU adopted a list of additional ad valorem duties on certain U.S. imports.  In 2020, the first Trump Administration extended the tariffs to cover certain steel and aluminum derivative products.  The EU then adopted a broader list of additional ad valorem duties on certain U.S. imports.  Adopted under the Enforcement Regulation, these Old Rebalancing Measures were designed to maximize political pressure on the first Trump Administration to rescind its tariffs.  They were suspended in 2023 following an agreement with the Biden Administration.

    As the suspension of the Old Rebalancing Measures expires automatically on 31 March, the Commission will reimpose them.  These Old Rebalancing Measures cover approximately €8 billion worth of EU imports from the U.S., intended to be proportionate to addressing the economic damage inflicted by the U.S. tariffs, and concern products ranging from boats to bourbon to motorbikes.

  2. New EU measures under Article 5 of the Enforcement Regulation (“New Rebalancing Measures”):  In response to the fresh U.S. tariffs impacting another €18 billion of EU exports, the Commission now plans to roll out new or additional ad valorem duties under Article 5 of the Enforcement Regulation (see the suggested product list).  A stakeholder consultation is open for comment from 12–26 March, gathering input from affected industries.  Following this, the Commission will draft an implementing act and consult Member States through the comitology procedure (as provided by the Enforcement Regulation).  The implementing act is scheduled to take effect mid-April, bringing the total value of U.S. exports potentially impacted by the Old and New Rebalancing Measures to €26 billion.

Continue Reading EU’s Reaction to New U.S. Tariffs on Steel and Aluminum

On February 20, 2025, the Office of the U.S. Trade Representative (“USTR”) announced that it is seeking public comments on any unfair trade practices and non-reciprocal trade arrangements implemented by foreign trading partners. The comment period is currently open and the deadline for submitting comments is March 11, 2025.

According to the Federal Register notice, comments can be submitted through a portal accessible at https://comments.ustr.gov/s/, under docket number USTR-2025-0001. USTR will accept comments from any interested party, including businesses, individuals, and trade associations, among others. Interested parties are able to include business confidential information in their submissions, which will not appear in the public version of their comments.

USTR’s announcement also stated that the public comment process is not the only opportunity to provide information to the agency on these issues, and that USTR “welcomes ongoing engagement with and information from any interested party.”

This comment period offers a new opportunity for U.S. exporters to seek the Administration’s  potential support in eliminating foreign market access barriers. If you are interested in submitting comments to USTR as part of this process, Covington can assist in the preparation and transmission of these comments. We would also be happy to assist in crafting a broader strategy for engaging USTR and other relevant agencies on these or other trade-related issues.

Background

USTR’s launch of this public comment process follows the issuance of the “America First Trade Policy” memorandum by President Trump on his first day in office, which directed USTR to lead a review of unfair foreign trade practices and to recommend appropriate remedies. USTR also linked the comment process to President Trump’s “Reciprocal Trade and Tariffs” memorandum issued on February 13, which directed USTR and the Commerce Department to investigate “the harm to the United States from any non-reciprocal trade arrangements adopted by any trading partners” and to recommend actions in response. Covington’s alert on this memorandum is available here.

Scope of Requested Comments

USTR has invited comments on a country-by-country basis (or also on an economy-wide basis in the case of the European Union) regarding (i) “any unfair trade practice by a foreign country or economy”; or (ii) “any non-reciprocal trade arrangements.” USTR has defined unfair trade practices broadly, to include “policies, measures, or barriers that undermine or harm U.S. production, or exports, or a failure by a country to take action to address a non-market policy or practice in a way which harms the United States.” USTR has also requested that comments quantify the harm caused by such practices—ideally with a corresponding dollar amount—and to explain the underlying methodology used to calculate that figure.Continue Reading USTR Seeks Public Comment on Unfair or Non-Reciprocal Trade Practices