Action and then Partial Delay of Tariffs Foreshadows Uncertainty
As we alerted members over the weekend, ACMA members should expect uncertainty in the North American supply chain for the near to midterm. President Trump followed up comments made on his first day in office by threatening to impose 25 percent tariffs on Canada and Mexico on Saturday, February 1. The tariffs, which would have gone into effect following a brief implementation period to allow entry for items already shipped, were delayed following agreements with both governments on border security measures. Canada and Mexico were both prepared to retaliate against U.S. imports.
The three countries are continuing negotiations, and Canada and Mexico are hoping to gain extensions to the 30 day delay or resolve the issue.
At the same time, President Trump imposed an additional tariff of 10 percent on China and ended the ability of companies to ship orders less than $800 directly to consumers, bypassing existing tariffs.
ACMA members have heard from members that the decision to disallow duty drawback for products that are eventually exported is a particular concern. If this is an issue for you, please contact ACMA’s Dan Neumann.
At this time, no exclusion process has been announced for any of these tariffs. The initial tariff action can be seen here.