On July 1, 2019, the Office of the U.S. Trade Representative (USTR) issued a Federal Register Notice where it proposes to impose additional customs duties of up 100 percent on certain imports from the European Union (EU) resulting from a World Trade Organization (WTO) dispute on subsidies for large civil aircraft. The proposed duties would apply to products classified in 89 subheadings of the Harmonized Tariff Schedule of the United States (HTSUS), which account for a trade value of approximately $4 billion. The EU products covered by the proposal include certain pork products, dairy products (particularly cheeses), olives, fruits, coffee (roasted and instant), pasta, mixed condiments and mixed seasonings, Irish, Scotch and other whiskies, chemicals, and metals. The complete list of products is available here.

This is the second round of proposed duties on EU imports pertaining to the same dispute on aircraft subsidies. On April 12, 2019, USTR proposed a first set of duties of up to 100 percent on approximately $21 billion worth of EU imports. That list includes motorcycles, wine, textiles, and other items.

In response, the EU announced its own proposed list of U.S. products subject to additional duties of up to 100 percent on April 17, 2019.  Those products include certain food and agricultural products, wine and spirits, tobacco, coal, chemicals, handbags and luggage, plastics, and tractors.

USTR now seeks comments and testimony on the new round of proposed duties, particularly regarding: 

• the specific products in the additional list to be subject to increased duties; 
• the level of the increase, if any, in the rate of duty; and
• whether increased duties on particular products on the additional list might have an adverse effect upon U.S. stakeholders, including small businesses and consumers.

Persons seeking to submit comments must do so by August 5, 2019, electronically through http://www.regulations.gov. There will also be a public hearing, allowing parties to testify. Requests to appear and testify must be submitted by July 24, 2019.

USTR's course of action may change in response to the ongoing subsidies dispute, most notably if the WTO arbitrator finds that the proposed duties are inconsistent with WTO-authorized countermeasures. Given the uncertainty in the near term, however, companies affected by the proposal should consider deploying a strategy that includes submitting comments (in favor or against the duties) and congressional advocacy. We anticipate that comments and testimony relating to products that can only be sourced from the EU or threaten strategic U.S. industries will be most persuasive.

We will continue to monitor the situation and report when further information is available.

For more information, please contact:

Richard A. Mojica, rmojica@milchev.com, 202-626-1571

Collmann Griffin*

Claire Rickard Palmer**

*Former Miller & Chevalier attorney
​​​​​​​**Former Miller & Chevalier consultant

The information contained in this communication is not intended as legal advice or as an opinion on specific facts. This information is not intended to create, and receipt of it does not constitute, a lawyer-client relationship. For more information, please contact one of the senders or your existing Miller & Chevalier lawyer contact. The invitation to contact the firm and its lawyers is not to be construed as a solicitation for legal work. Any new lawyer-client relationship will be confirmed in writing.

This, and related communications, are protected by copyright laws and treaties. You may make a single copy for personal use. You may make copies for others, but not for commercial purposes. If you give a copy to anyone else, it must be in its original, unmodified form, and must include all attributions of authorship, copyright notices, and republication notices. Except as described above, it is unlawful to copy, republish, redistribute, and/or alter this presentation without prior written consent of the copyright holder.