Recent US trade developments affecting supply chains

In brief

The past few months have seen several important developments affecting US global trade, including: 

• US Trade Representative (USTR) Katherine Tai on October 12 announced the next steps in the statutory four-year review of Section 301 China tariffs, including opening on November 15 of an electronic portal for submission of comments. 
• The Commerce Department’s Bureau of Industry and Security (BIS) on October 7 issued an extensive package of interim final regulations imposing new export controls on advanced computing and semiconductor manufacturing items to China. 
• BIS on September 15 issued final regulations expanding the existing sanctions against Russia and Belarus; the expanded sanctions took effect on September 15.
• USTR Tai on September 14 announced the successful resolution to a United States-Mexico-Canada Agreement’s (USMCA) Rapid Response Labor Mechanism (RRM) petition related to the Manufacturas VU facility in Piedras Negras, State of Coahuila, where workers previously were denied their right of free association and collective bargaining. 
• USTR Tai on August 16 announced the successful resolution to a USMCA RRM petition regarding the situation at the Teksid Hierro de México, S.A. de C.V. (Teksid Hierro) facility in Frontera, Mexico, where workers previously were denied their freedom of association and collective bargaining rights.
• USTR Tai on July 20 announced that the United States has requested dispute settlement consultations with Mexico under the USMCA. The consultations relate to certain measures by Mexico asserted to undermine American companies and US-produced energy in favor of Mexico’s state-owned electrical utility, the Comisión Federal de Electricidad (CFE), and state-owned oil and gas company, Petróleos Mexicanos (PEMEX). 

Action item: Taxpayers that could be affected by any of these developments should analyze the potential impact on their supply chains and overall operations.