Tariffs are here: what companies need to do now

The Trump administration implemented its first round of tariffs, originally slated to take effect February 4, on imports from Canada, China and Mexico.

Negotiations are actively taking place between the US and affected countries, which may change the timing and scope of the tariffs. As originally issued via executive orders on February 1, the tariffs include:

• 25% tariffs on imports from Canada, with 10% tariffs on energy resources. Duty-free de minimis treatment is also revoked for the affected articles, and no drawback (refund of duties, taxes, and fees on imports) is available for the duties imposed under the order.
• 25% tariffs on imports from Mexico, with a similar revoking of duty-free de minimis treatment and no drawback available. (Note these have now been postponed one month.)
• 10% additional tariffs on imports from China, with similar revoking of duty-free de minimis treatment and no drawback available.

The executive orders each include language providing that the president may increase or expand the scope of the duties should the countries impose retaliatory measures.

It’s imperative that companies monitor developments to remain nimble and ready to respond as the landscape shifts. Join EY tax and trade professionals for an update on what’s happening in trade, the latest on tariffs and steps companies should consider taking now.

EY webcast managed and produced by Ernst & Young LLP’s Tax Technical Knowledge Services Group, Washington, DC: Lynn Fairfax