International Trade Today is providing readers with the top stories from last week in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
Section 232 tariffs on a new list of steel and aluminum “derivatives” outside of Chapters 73 and 76 are now set to take effect, after the Commerce Department released a notice that “adequate systems are in place to fully, efficiently, and expediently process and collect tariff revenue for covered articles for both steel and aluminum.”
Republicans voted in the House to say that there will be no more calendar days in the rest of this session of Congress, through the end of 2025, in a procedural gambit directly blocking the ability of critics of President Donald Trump's tariffs on Canada and Mexico to challenge that policy.
President Donald Trump threatened to double Section 232 tariffs on Canadian steel and aluminum to 50%, starting March 12, after Ontario placed a 25% surcharge on electricity exported to Michigan, Minnesota and New York. However, Ontario Premier Rob Ford later dropped the surcharge, and Trump told White House reporters he "probably" would not follow through with the threat as a result.
Commerce Secretary Howard Lutnick said the tariffs that the president threatened over Canadian trade policies for dairy and lumber won't come this week, as the president had said two days earlier.
Canadians and New Englanders, brought together by the New England-Canada Business Council, expressed bewilderment at the trade war directed at Canada, but said that President Donald Trump's actions will not be easily overcome as the two countries start to talk about how to change the NAFTA successor agreement in its sunset review.
President Donald Trump told reporters that a 250% tariff on dairy products imported into Canada makes it impossible to sell U.S. dairy there, and that "a tremendously high tariff" on lumber in Canada also makes it impossible to export that product to Canada. He called U.S. exports to Canada in those two categories "almost nonexistent." He said he is going to set U.S. tariffs at the same levels.
The implementation of -- and seemingly abrupt reprieve from -- 10% to 25% duties on goods imported from Canada and Mexico is causing whiplash among customs brokers.
Given that more than half of imports from Canada and Mexico don't claim USMCA preferences, trade lawyers and customs experts are expecting a sharp and rapid increase in entries that claim the preference.
President Donald Trump is excluding Canadian and Mexican exports from 10% or 25% duties that began March 4, as long as those goods can qualify for USMCA benefits. The change starts at 12:01 a.m. March 7.