A bill being considered in the House Ways and Means Committee that would extend Trump tax cuts that would otherwise expire at the end of the year is looking to international trade to pay for part of the cost of income tax reductions. The bill also adds new tax breaks, such as on overtime pay and tips.
CBP released guidance on the decrease of the reciprocal tariff rate on China to 10% beginning at 12:01 a.m. EDT on May 14. As provided in the executive order issued by President Donald Trump the previous day, the guidance says filers of entries from China, Hong Kong and Macau after the effective date should report subheading 9903.01.25, which is the subheading for the 10% universal tariff applicable to almost all countries.
President Donald Trump touted his plan to get foreign health purchasers to pay more for pharmaceuticals, and U.S. consumers to pay less, as he signed an executive order seeking to equalize those prices.
The Trump administration is leaving 20% tariffs levied in response to fentanyl smuggling in place, while reducing what had been 125% reciprocal tariffs to just 10%, the same as all reciprocal tariffs globally.
Overnight, the U.S. issued a statement that, by May 14, it will suspend 115 percentage points of its 145% International Economic Emergency Powers Act tariffs on China, and keep the lower rate of 30% "for an initial period of 90 days" while trade talks go on.
The reduction of the reciprocal tariff on China from 125% to 10% will take effect at 12:01 a.m. ET on May 14, said President Donald Trump in an executive order. The decrease will not be retroactive.
The Swiss president told reporters in Bern that her country would put together a letter of intent within two weeks, in the hopes of reaching an "agreement in principle" with the U.S., like the U.K. did (see 2505080033), and thereby avoid 31% reciprocal tariffs set to begin July 9.
The European Commission on May 7 approved an over $5.6 billion French re-insurance scheme for export credit to the U.S. The scheme will run from May 8 to July 8 and will let wine and spirits exporters ship inventory to the U.S. prior to new tariffs on French goods taking effect when a 90-day pause on country-specific reciprocal rate expires.
Rep. Young Kim, R-Calif., introduced a bill to require notification of Congress and provide justification for tariffs enacted through presidential action.
Rep. Jamie Raskin, D-Md., and Senate Minority Leader Chuck Schumer, D-N.Y., are teaming to introduce a bill called the Truth in Tariffs Act.