Trade and Tariff
Background OPEI has not historically taken formal positions or advocated on trade matters as they inherently raise conflicting member interests. Nonetheless OPEI monitors trade developments and works with member committees especially when a consensus may exist to advocate a position. State of Play Since the outset of the new administration there have been myriad executive orders and formal and informal policy announcements impacting U.S. trade terms. Some are an extension or adjustment to policies and tariffs beginning in and continuing through both the Trump (45) and Biden administrations. The current administration’s policy and strategy is aimed at “America First” and “Made in America” principles, not conducive to the orthodoxy of rules based and most favored nation trade. Instead, the administration is focused on individual trade deficits and deals to mitigate them. A very general summary of the current forces at play and open considerations include: • A July deadline for significant reciprocal tariff increases (above the levied 10% base) on some 70 nations. • Use of The International Emergency Economic Powers Act (IEEPA) as the basis for broad and significant tariffs. • Section 301 tariffs intended to address illegal/nefarious activities by trading partners, with particular focus on China. • Section 232 tariffs intended to address national security impacts of trade imbalances and/or over reliance on foreign supply. Most recently includes June 5 announcement of 50% tariffs on steel and aluminum. • U.S. Mexico Canada Agreement (USMCA) and impacts of other tariffs imposed in advance of the 2026 review of the pact required by the treaty. • The “tariff stacking” effect of all of the above, and other actions, which place significant total tariff rates on some products. Section 232 (steel & aluminum derivatives) One of the more significant actions with impacts to industry products has been the 232 tariffs requested by stakeholders on imported products containing foreign sourced steel and aluminum. While there was no member agreement for OPEI to submit comments in early June, OPEI did join a coalition letter filed by the National Foreign Trade Council providing broad downstream user and OEM input on the process for consideration of such tariff proposals. Robert De Francesco, a partner in the Washington, D.C., office of Wiley Rein, will be briefing the member audience in Park City and taking questions on all of these issues and developments. Robert will also be available during the board meeting for additional discussion.
Action requested: None
Made with FlippingBook Digital Proposal Creator