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Trade War: US Deadline Ends, Retaliation Begins
The new US tariffs against Canda and Mexico enacted by President Trump under the International Emergency Economic Powers Act (IEEPA) have now officially gone into effect, along with a tariff increase to 20% on goods from China:
All articles from China and Hong Kong are now subject to an additional 20% tariff.
All articles from Mexico are now subject to an additional 25% tariff.
All articles from Canada are now subject to an additional 25% tariff, except for certain energy products:
Crude oil, natural gas, lease condensates, natural gas liquids, refined petroleum products, uranium, coal, biofuels, and critical minerals are instead subject to an additional 10% tariff.
While an ultimate rapprochement or mitigation is certainly not off the table, the current reality is, the US has started a trade war with its primary trading partners, and those partners are retaliating.
Canada has retaliated by imposing 25 % tariffs on goods imported from the U.S. effective immediately. The first round of retaliatory tariffs will apply to a list of 1,256 products such as orange juice, peanut butter, wine, spirits, beer, coffee, appliances, apparel, footwear, motorcycles, cosmetics, and pulp and paper. These tariffs do not apply to goods already in transit and will be in place as long as the U.S. tariffs remain in place.
China has also announced retaliatory tariffs for 80 different manufactured and energy products that the U.S. exports to China. There will be 15% tariffs on a set of energy exports, including coal, natural gas, and petroleum; and 10% tariffs on 72 manufactured products or parts including trucks, motor homes, and agricultural machinery.
Mexico has not yet issued retaliatory tariffs, but they are expected to counter on Sunday, March 9.
Continue to monitor Allyn’s Tariff Corner for new developments. Allyn International’s service suite includes consultation on current and developing issues in the US trade community.
Contributors: Matt Dreckman & Andrew Dosher
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 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.