Posted on June 07, 2018
On March 8, 2018 the president issued proclamations 9704 and 9705 under section 232 of the Trade Expansion Act of 1962. These orders provided for 25% additional import duties for specified steel products and 10% additional import duty on specified Aluminum products from all countries including Mexico and Canada. On May 31, the United States lifted the exemption from products of Mexico and Canada origin prompting another escalation in what may are calling the “Trade War.”
In response to these measures, Canada intends to enact trade-restrictive countermeasures on 128 U.S origin items inducing steel, aluminum, and other products from the U.S, totaling up to C$16.6 billion. These tariffs will take effect July 1, 2018, and will remain active until the U.S. removes their trade-restrictive measures against Canada.
Similarly, on June 5, 2018 The Mexican government announced that they intend to impose tariffs on $3 billion worth of U.S. imports as a retaliation against the U.S. steel and aluminum tariffs. The Mexican government announced the new tariffs will become effective immediately, and will target over 100 US-origin items including Pork, apples, bourbon, cheese other products from the U.S. These tariffs will also remain active until the U.S. removes their trade-restrictive measures against Mexico.
Amid all the uncertainty, savvy importers should be reviewing their supply chain for creative solutions to mitigate effects of escalating action on behalf of both countries. Areas to analyze include parts databases and HTS classifications for duty increase examination as well as sourcing strategies.
For over 25 years. Allyn International has provided import compliance consulting support to clients ranging from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North America, Europe and Asia.
For more information on how Allyn can assist you and your business to stay at the front lines of the Trade War, reply to this message, reach out to one of our experts at AllynCustoms@allynintl.com, or visit our website at www.allynintl.com.
About Allyn International
Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North and South America, Europe and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China and Prague, Czech Republic. For more information, visit www.allynintl.com.