A looming threat for US importers has been the prospect of new auto tariffs from Europe, Japan, and Korea that could potentially see rates of up to 25% on cars entering the United States. The administration had proposed the tariffs months ago but delayed them by six months for further review. That time comes up on November 14th– and it’s not yet clear which way they will go.
Discussions about lessening those potential tariffs have been ongoing through the negotiation of several trade deals with the related entities, with Korean and Japanese deals said to be close to completion. However, the EU, currently in a row with the US over the US’ imposition of tariffs from the Airbus case, has taken longer. This could potentially have large ramifications for US jobs one way or the other, as companies like BMW and Mercedes-Benz have some of their largest factories in the United States.
Meanwhile, the WTO ruled in favor of China on a 2016 case regarding some anti-dumping issues of products that were shipped to China. The value of the impairment was quantified at $3.579 billion annually, and with further approval, China may soon have the OK from the WTO to impose retaliatory tariffs for that value on the products they choose.
These tariffs now enter a fraught negotiation between China and the USA, further complicated by the cancellation of the upcoming Asia-Pacific Economic Cooperation (APEC) forum in Chile due to security concerns stemming from ongoing protests in Santiago. Both Presidents Trump and Xi were slated to appear and meet in Santiago this month, perhaps leading to progression in a deal, but now plans for the first phase of a deal to resolve outstanding issues are unclear.
The big takeaway to us is that tariffs will remain a major consideration for any importers into the USA for a long time to come. No matter where the imports are from or the industry, there may be a development that will spark the imposition of new duties, and so all importers need to know how to stay compliant and reduce the impact on their businesses.
The best way to do this is by talking to JM Rodgers. As experts in Customs compliance and duty drawback, we can help importers and exporters follow the ever-changing compliance landscape while pursuing all available refunds. To learn more, please contact our VP of Sales Andrew Galloway at 973-726-5340 or email@example.com.