Tariffs promised by President-elect Donald Trump would result in increased prices for U.S. consumers, experts warned in an analysis of current trade flows and tariff rates.
Customs duty
A customs duty is a tariff or tax which a country imposes on goods when they are transported across international borders. Customs Duties are used to protect countries' economies, residents, jobs, and environments, by limiting the flow of imported merchandise, especially restricted and prohibited goods, into the country. The Customs duty rate is a percentage determined by the value of the article purchased in the foreign country and not based on quality, size, or weight. U.S. customs duties are listed in the Harmonized Tariff Schedule of the United States.
Congress will pass a spending bill before leaving next week, and while everyone wants to attach their legislation to it, the prospect for Haitian trade preferences to get a ride seems relatively strong.
The Office of the U.S. Trade Representative is hiking tariffs on Chinese solar wafers and polysilicon to 50% and Chinese tungsten products covered by Harmonized Tariff Schedule subheadings 8101.94.00, 8101.99.10 and 8101.99.80 will face 25% tariffs, beginning Jan. 1.
The Office of the U.S. Trade Representative announced eligibility for “trade surplus” tariff-rate quotas (TRQs) for sugar originating in certain free trade agreement countries for calendar year 2025. USTR found Colombia, Panama and five members of the Dominican Republic-Central America Free Trade Agreement -- Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua -- eligible for the TRQ. The agency found that Chile, the Dominican Republic, Morocco and Peru don't qualify.
House Ways and Means Committee member Rep. Darin LaHood, R-Ill., said that there will be a renewed bipartisan effort to extend the African Growth and Opportunity Act next year. He called AGOA "something that is very beneficial to our U.S. trade policy." But LaHood left the door open to phasing out or changing the third-party fabric provision of AGOA in the 2025 reauthorization.
Importer Fine Emeralds will get refunds for duties paid on its rough, unworked emerald stones, the company announced in a stipulated judgment filed on Dec. 9 at the Court of International Trade. While the emeralds were assessed 10.5% duties under Harmonized Tariff Schedule subheading 7103.10.40, the government agreed to classify the products under subheading 7103.10.20, free of duty. Fine Emeralds' preferred subheading covers uncorked precious stones (Fine Emeralds v. U.S., CIT # 20-03928).
If incoming President Donald Trump imposes 25% tariffs on all Mexican and Canadian imports, it would be deeply disruptive to business in Texas, Arizona, Michigan and southeastern states with major auto manufacturing.
If President Trump were to impose 25% tariffs on all Mexican and Canadian imports, because he believes those countries are not doing enough to stop migration and drug trafficking, no industry would be hurt more than the auto industry.
Brandon Chen, who took the April 2022 customs broker license exam, appealed the final results of his exam to the Court of International Trade, contesting 11 questions that CBP denied him credit for. Filing a complaint at the trade court on Nov. 25, Chen noted that he is only two correct answers away from a passing score of 75% (Brandon Chen v. U.S., CIT # 24-00208).
President-elect Donald Trump will most likely either turn to the International Emergency Economic Powers Act (IEEPA) or Section 301 of the Trade Act of 1974 to impose his recently announced tariffs on Canada, Mexico and China, said trade lawyers interviewed by Trade Law Daily. Though much remains unknown about how Trump will impose these tariffs, the president-elect may turn to the two broad statutes to impose the tariffs to accomplish his stated goals of curbing the flow of migrants and fentanyl into the U.S.