Extension On Tariff Comments, Avocado Inspections, Border Protection, and China’s Indo-Pacific Ambiti
US Suspends Avocado Inspections from Michoacan
The United States has temporarily suspended safety inspections for avocados and mangos from Michoacan, a major Mexican state known for its agricultural exports, following a security incident involving USDA staff. While exports from Michoacan have not been blocked, the inspections have been paused until further notice, potentially impacting one of Mexico’s top farm exports. The suspension was triggered by an incident at a protest in support of local police, highlighting the security concerns in the region. Mexican officials have been in discussions with U.S. authorities to address the situation and ensure export conditions meet safety standards.
Highlights:
- The U.S. has suspended safety inspections for avocados and mangos from Michoacan due to a security incident involving USDA staff.
- The suspension will remain in place until the security situation is reviewed and proper protocols are implemented.
- Michoacan, known for its agricultural exports, could face significant impacts on its avocado shipments if the inspections are prolonged.
- Mexican officials are working with U.S. authorities to address security concerns and uphold export conditions from the state.
Shein and Temu’s Express Lane Halted by US Border Protection
A recent crackdown by the U.S. Customs and Border Protection (CBP) on customs brokers handling online shopping orders from popular Chinese brands, such as Shein and Temu, is expected to cause delivery delays and bottlenecks. The CBP suspended multiple brokers from an expedited clearance program for duty-free, direct-to-consumer imports due to concerns of contraband being brought into the country. This move comes as over 1 billion packages, valued at $50 or less, are projected to arrive in the U.S. this year. Shein and Temu heavily rely on the expedited clearance process, which facilitates efficient processing. While the impacted brokers have not been named, the situation has led to increased inspections and reviews of shipping information submissions.
Highlights:
- The U.S. Customs and Border Protection has suspended customs brokers handling online shopping orders from Chinese brands Shein and Temu from an expedited clearance program.
- Delivery delays and bottlenecks are expected due to increased inspections and the review of shipping information submissions.
- Over 1 billion packages, valued at $50 or less, are anticipated to arrive in the U.S. this year, driven by high consumer demand for items made by Chinese factories.
- The crackdown on duty-free imports below $800 is driven by political pressure to protect U.S. businesses and address concerns about the flow of illegal drugs into the country.
India-US Alliance Steels Up Against China’s Indo-Pacific Ambitions
India and the United States have pledged to overcome obstacles to enhance bilateral strategic trade, technology, and industrial cooperation. National security advisers Ajit Doval and Jake Sullivan, representing their respective countries, affirmed their commitment during Sullivan’s visit to New Delhi. The collaboration focuses on strengthening ties to address shared concerns regarding an assertive China in the Indo-Pacific region. The two nations have initiated joint efforts to safeguard sensitive technologies, launch strategic partnerships in semiconductor manufacturing, invest in critical mineral resources, and explore prospects for joint production of defense and aerospace systems.
Highlights:
- India and the United States are dedicated to addressing barriers hindering bilateral strategic trade, technology, and industrial cooperation.
- The two countries emphasized mutual concerns about an assertive China in the Indo-Pacific region, fostering a deeper strategic partnership.
- Initiatives include preventing the leakage of sensitive technologies, establishing strategic semiconductor partnerships, and co-investing in critical mineral resources.
- Plans for joint production of defense equipment, such as land warfare systems, are being discussed to further boost collaboration in the defense and aerospace sectors.
Urging Extension on Tariff Comment Period
A coalition of 173 American trade associations, under the “Americans For Free Trade” umbrella, has urged the Biden administration to extend the public comment period for proposed tariffs on Chinese imports, including electric vehicles (EVs), batteries, and solar products. They have requested a 30-day extension, citing the need for more time to gather comprehensive feedback on the proposed tariff modifications, which cover 387 product categories and include significant increases in duties, such as quadrupling tariffs on Chinese EVs to over 100% and doubling semiconductor duties to 50%. The request for an extension comes after President Biden announced the tariff increases to safeguard U.S. manufacturers from the impact of Chinese industrial overcapacity. Meanwhile, other policy groups have advocated for even stronger trade barriers against Chinese imports.
Highlights:
- A coalition of 173 American trade associations seeks a 30-day extension for the public comment period on proposed tariffs on Chinese imports, including EVs, batteries, and solar products.
- The proposed tariff modifications affect 387 product categories, encompassing significant duty increases, such as quadrupling tariffs on Chinese EVs to over 100% and doubling semiconductor duties to 50%.
- President Biden’s tariff increases aim to protect U.S. manufacturers from the impact of Chinese industrial overcapacity flooding global markets.
- Other policy groups, including the Alliance for American Manufacturing, have advocated for more rigorous trade barriers against Chinese imports, urging the reinstatement of a long-expired legal tool to counter Chinese import surges.
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