President Donald Trump said at the White House that tariffs on imported autos, now at 2.5%, will go to 25%. He then signed an executive order, but that order was not yet posted online. The staffer who presented that order said the 25% tariff would be added to existing tariffs.
As the U.S., Mexico and Canada are poised to renegotiate the free trade agreement known as USMCA among the three countries, expect the U.S. to review the rules of origin and "tighten them" in favor of requiring a higher percentage of North American content, trade attorneys with Miller and Chevalier said on a March 25 webinar sponsored by public accounting firm Forvis Mazars.
Additional 25% tariffs for cars and light trucks and cargo vans will take effect 12:01 a.m. ET on April 3, with tariffs on parts including engines and engine parts, transmissions and powertrain parts, and electrical components coming later, but no later than May 3, said an executive order issued by President Donald Trump.
At a hearing largely focused on the need to get other countries to lower their tariffs, sanitary and phytosanitary barriers, and discriminatory tariffs on services exports, Democrats on the House Ways and Means Trade Subcommittee focused on Trump's tariff hikes.
Apparel importers and retailers don't have much favor in this administration, but groups representing their interests tried to appeal to the Office of the U.S. Trade Representative's logical side in comments requested by the agency on the reciprocal tariffs slated for April 2. The trade group representing the greatly diminished domestic textile and apparel industry, in contrast, said reciprocal tariffs could be used to recoup $100 billion in annual lost sales.
National Association of Foreign-Trade Zones Chair Shannon Fura, a founder of Chicago law firm Page Fura, said the language in President Donald Trump's recent executive orders creating new tariffs, which say that goods must pay tariffs before entering FTZs, "are handcuffing some of the benefits" that FTZs are designed to provide.
CBP on March 19 released guidance on 10% tariffs on Canadian energy goods in the form of a spreadsheet that lists commodities and their respective tariff subheadings that could be subject to the additional 10% tariff, rather than the 25% tariff applicable to other non-USMCA Canadian goods. Attached to a CSMS message, the spreadsheet includes not only petroleum products, uranium, coal and biofuels, but also rare earths covered by the 10% tariffs and metals of chapters 72, 73 and 76 that are alloyed with rare earths, among other things.
Nearly 750 organizations and businesses gave input to the administration on trade barriers or subsidies that prevent them from reaching their sales potential.
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Jennifer Thornton, who recently led the Business Roundtable's advocacy on trade policy, has joined the Office of the U.S. Trade Representative as general counsel. Before going to the trade group that represents America's largest companies, she was trade counsel to Rep. Kevin Brady, R-Texas, and Rep. Adrian Smith, R-Neb., when they were in the minority on the House Ways and Means Committee.