President Trump Delays Tariffs on Imports from Canada, Mexico
Canadian President Justin Trudeau concluded a late afternoon call today with President Trump in which it was decided that the 25% tariffs set to take effect on U.S. imports of Canadian goods at 12:01 a.m. ET tonight will be postponed for 30 days.
Trudeau said Canada will be “implementing our $1.3 billion border plan — reinforcing the border with new choppers, technology and personnel, enhanced coordination with our American partners, and increased resources to stop the flow of fentanyl. Nearly 10,000 frontline personnel are and will be working on protecting the border.”
In addition, Trudeau affirmed to President Trump that Canada will appoint a “Fentanyl Czar,” list cartels as terrorists, “ensure 24/7 eyes on the border,” and initiate a Canada-U.S. Joint Strike Force to fight organized crime, fentanyl, and money laundering. Trudeau also said a new Canadian intelligence directive on organized crime and fentanyl will be formed at an investment from Canada of $200 million.
This announcement follows a similar 30-day pause of the 25% Mexico tariff announced this morning after President Trump had a phone call with Mexican President Claudia Sheinbaum who committed to send 10,000 Mexican troops to the borders to focus on fentanyl and illegal immigration.
New China Tariff Still in Effect
The 10% additional China tariffs, also announced by President Trump on Saturday, Feb. 1, with an effective time and date of 12:01 a.m. ET on Tuesday, Feb. 4, are still in play at the time of this NCBFAA eblast’s publishing. Customs and Border Protection (CBP) provided guidance to the trade this afternoon regarding implementation of the Chinese tariffs.
Please keep in mind the China tariff will be 10% ad valorem (at value), in addition to the existing Section 301 duties of 25% and normal duty rate as shown in the tariff schedule.
The tariff will be effective for all shipments entered for consumption on or after Feb. 4th.
This applies to ALL commodities - this is not a list-based tariff like Section 301.
There are NO exceptions.
INCLUDES products which are of Hong Kong origin
The tariff will be effective for all shipments entered for consumption on or after Feb. 4th.
However, there is provision to allow for merchandise already in transit. Specifically, if the merchandise was exported from China prior to Feb. 1, it will not be assessed the duty.
It is important to understand that final instructions from CBP have yet to be received; combined with the interpretation of this provision by any given CBP officer, shipments where export dates may be ambiguous could end up being subject to the additional duty.
To discuss your cargo details or solutions on particular lanes, please contact your South East World Wide (Chicago), Ltd. Sales Representative.