Minnesota Governor Walz Announced as Democratic Vice Presidential Nominee
On August 8, 2024, Vice President Kamala Harris – now the Democratic Presidential nominee – announced the selection of Minnesota Governor Tim Walz to serve as her running mate. As governor of a major agriculture producing state, Walz has often highlighted the importance of export markets to the U.S. – and his state’s – economy. At the same time, throughout his six terms in the U.S. House of Representatives, Walz regularly voted against free trade agreements and championed U.S. manufacturing and worker protections. In rejecting legislation to grant former President Barack Obama trade promotion authority (or “fast track”) for the Transpacific Partnership, Walz said in 2015, “We need a trade deal that’s fair, that restricts currency manipulation, promotes ‘Made in America’ manufacturing, and opens foreign markets for our agricultural products.” Notably, during his time in the House, Walz was a Member of the Congressional Steel Caucus.
Bipartisan Members Introduce Trade Crimes Legislation
On July 25, 2024, Congresswoman Ashley Hinson (R-IA) led a group of colleagues – including the bipartisan leaders of the House Select Committee on the Chinese Communist Party – in introducing the Protecting American Industry and Labor from International Trade Crimes Act (H.R. 9151). Days later, Senators Lindsey Graham (R-SC) and Sheldon Whitehouse (D-RI) led the introduction of a Senate companion (S. 4955).
The legislation directs the U.S. Department of Justice (DOJ) to establish a new task force dedicated to prosecuting international trade crimes, including customs fraud, duty evasion, and transshipment, and authorizes $20 million for these efforts in FY2025. The bill also requires an annual report to Congress on DOJ’s work in this space, including statistics on trade related crimes, and would provide “training and technical assistance to other federal, state, and local law enforcement agencies, expanding investigations and prosecutions, and allowing for parallel criminal and civil enforcement actions.”
“Not a week goes by without the Committee learning of yet another American company harmed by Chinese companies shipping their goods through other countries to illegally evade tariffs. While heightened tariff rates can help level the playing field for U.S. businesses, the legislation we are introducing today adds teeth to the tariffs and punishes companies for breaking the law,” said China Select Committee Chairman John Moolenaar (R-MI).
We will continue to monitor the bill’s prospects, including as part of a House China package previewed by Speaker Johnson (R-LA) in early July.
Rep. Khanna Introduces Modern Steel Act
Earlier this month, Congressman Ro Khanna (D-CA) introduced the Modern Steel Act, a sweeping bill designed to “build new iron and steel plants in deindustrialized towns, bring next generation steel back to America, strengthen domestic manufacturing, create good-paying jobs and retain existing ones, and increase U.S. industrial competitiveness globally.” In addition to providing grants, loans, and tax credits to incentivize new steel mills and improvements to existing mills – with a focus on innovative, low-emissions production – the bill also directs the U.S. International Trade Commission to study, recommend and impose an import tariff on foreign carbon-intensive steel that surpasses the U.S. industry average. More details on the bill are available here.