The past few days have seen President Trump engage in a flurry of US tariff activity, with the latest position outlined below.
Canada and Mexico
25% tariffs were signed off on 4th February by Trump, but after discussions in the days that followed, he then postponed for 30 days. Trump advised this week that time had run out and confirmed the tariffs were to be introduced from 4th March. On 7th March, he has suspended the tariffs again until 2nd April for certain products. Mexican imports that meet the USMCA Agreement, which accounts for around 50% of all imports from the country, are exempt for now. Canadian auto industry products are also now exempt until the deadline and some agricultural and energy products are to be tariffed at 10% for now.
China – 4th February saw a 10% hike on imports from China, which was increased this week to 20%. China has retaliated with their own tariff hikes and have said they are ready for a trade war.
European Union
Nothing official has been announced yet, although the EU will be subject to the steel tariffs below. Trump has repeatedly said that tariffs on the EU will be coming.
United Kingdom
Nothing official has been announced yet, although the UK will be subject to the steel tariffs below. Last week’s meeting between Trump and the prime minister seemed to have suggested a trade deal may be possible.
Steel and Aluminium
Announced last month by Trump, was a new 25% global tariff on steel and aluminium, which is about to go live from 12th March.
Ecommerce/parcels
Trump ordered the ‘de minimis’ trade exemption be cancelled on 4th February, which allows low value products to be imported duty free. However, after cancelling the rule, customs and postal services did not have the systems to collect duty, so it was immediately reinstated and still remains in place. The US government have insisted on solutions by 1st April, but how long this would take to implement remains unclear.
While the above represents the position at the time of writing, please be aware that this is a topic that is moving fast.
