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Chuck Albertson

Proposed US tariffs on lenses from Germany

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1 hour ago, Herr Barnack said:

I wasn't asking just you - I was asking all 7.7 billion inhabitants of this planet, hoping against hope that someone has an answer that actually makes some sense.

Upon further reflection, I now realize that hoping to make sense out of said load of Byzantine bureaucratic hogwash was hopelessly unrealistic on my part.

Well, one other thing I noticed in the filing is the proposal to charge tariffs on a wider range of imported aircraft, including helicopters. Also aircraft parts and components, including fuselage assemblies and wings. The last bit seems squarely pointed at the Airbus plant in Alabama that is assembling the A220 regional jet from parts imported from the EU (the wings are made in Belfast). Even though it doesn't compete in the RJ market, Boeing kicked up a fuss about this plane being sold below cost when it was the Bombardier CS100 (and I must say, the nicest RJ I've flown on), and persuaded the Commerce Department to impose tariffs of nearly 300 percent on it at the end of 2017. The US International Trade Commission later reversed the DoC tariff order, and Airbus decided to obviate the matter by buying the RJ line from Bombardier and opening the final assembly plant in Mobile.

The October 18 list includes imported aircraft above a certain size. The tariff on those is 10 percent, instead of the 25 percent charged for everything else on that list. It was going to be 25 percent, but the American carriers that are buying Airbus beefed about it.

The basis for the rest of the stuff on the list beggars belief.

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The US Trade Representative announced revisions on February 14 to the tariffs on EU products, originally imposed on October 18, 2019 in response to the WTO ruling on Airbus subsidies. The 25 percent tariff on photographic lenses from Germany remain. The 10 percent tariff on imported EU aircraft is increased to 15 percent. You'll be delighted to hear that they dropped prune juice from the agricultural products subject to a 25 percent tariff. Apparently, the prune juice lobby has more juice than Leica dealers. Oh, and German and French butcher/kitchen knives are now subject to the 25 percent tariff. Full text of the notice here:

https://ustr.gov/sites/default/files/enforcement/301Investigations/Notice_of_Modification_of_Section_301_Action_Enforcement_of_U.S._WTO_Rights_in_Large_Civil_Aircraft_Dispute.pdf

Edited by Chuck Albertson

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