America's Trade War
Hello, I'm Corie Koropatnicki - Account Manager of GHY USA. Today we are here to talk about recent U.S. trade actions. The United States has & is taking trade actions against a variety of countries and facing retaliation from two of its largest trading partners - Canada & China.
The most significant us trade actions are under Section 232 and section 301. Under Section 232, additional duty is already being imposed on U.S. imports of steel at a rate of 25% and U.S. imports of aluminum at a rate of 10%. Commerce has also initiated an investigation on vehicles and automotive parts.
Phase 1 of the Section 301 trade action covers goods of Chinese origin which took effect July 6th, 2018.
The U.S. has implemented a 25% duty on 818 tariff lines. It doesn't matter where the goods are shipped from as this additional tariff applies to 'the country of manufacture'. These products will face an additional tariff of $34 billion dollars. Additionally, on June 15th & July 6th (correction – July 10th) President Trump has now threatened further tariffs of $450 billion.
Over 6,000 tariffs are currently under review, 284 at 25% and 6,031 at 10%. There is definitely a trade war on with China and President Trump isn’t happy with China’s retaliation that impacts America, especially soybean farmers. The United States trade actions of $34 billion dollars are less than 10% of what has been threatened.
What should an importer/trader do? Take the time to ensure your products are classified correctly and consistently as well as that they reflect an accurate country of manufacture.
GHY has a tool that can help - GHY Classify is a tariff tool used by the us census bureau that generates a certificate and illustrates reasonable care in preparation of future audit.
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