July Washington Policy Issues Outlook

July 2, 2018



Brewing trade wars: Trade watchers will be on the lookout this month for any indication that high-level trade talks with China have resumed, but it may be too late to avert the tariffs that both countries have threatened against each other's exports.

The first round of U.S. duties targeting China and its technology practices will take effect July 6, on $34 billion worth of Chinese imports in sectors like robotics and automobiles. Those tariffs are expected to prompt near-immediate reciprocal action from Beijing.

And those aren't the only tariffs that will go into effect in July. Canada'sretaliatory penalties against Trump's steel and aluminum duties were set to begin on the first of the month against $13 billion in U.S. goods, while Mexico will target another $3 billion in U.S. exports on July 5.

The White House will also move forward this month with its investigation into whether to impose duties on imports of autos and auto parts, holding a public hearing beginning July 19 to allow industry representatives and others a chance to provide feedback on the probe.

NAFTA, NATO: Looking abroad, U.S. Trade Representative Robert Lighthizer and his team were expected to resume NAFTA talks with Canada and Mexico after the Mexican presidential elections July 1.

President Donald Trump will also have a chance to meet with a number of primarily European allies when he travels to Brussels in the middle of the month for a NATO summit, where trade is likely to be a major point of discussion . Trump is also v