Trump Tariffs: Executive Orders, Postponements And Retaliations
President Trump signed three executive orders for customs tariff amendments on Saturday that signified the start of his trade war against his biggest trading partners.
Trump’s orders imposed a 25% tariff on imports from Canada and Mexico and a 10% duty increase on products from China. However, within 48 hours, two of the tariff hikes were postponed for 30 days after Trump held talks with the Canadian and Mexican presidents.
Both countries seemingly agreed to improve security on their borders with the US during their respective phone conversations and Mexico has agreed to send 10,000 troops to their border to stem the flow of illegal drugs.
The tariff on Chinese imports went live from February 4th. Products enroute and in the final mode of transport before 1st February should be exempt from the additional 10% duty, provided the customs entry is submitted before 7th March.
Trump has indicated that 10% is an ‘opening salvo’ on China and if an agreement cannot be reached then tariffs could become ‘very, very substantial’.
The US president suggested on Monday that he would be talking to his Chinese counterpart ‘soon’. However, after China retaliated and imposed additional tariffs of their own on some US products, Trump has since added that he is in no hurry to make that call.
Europe and the UK were also topical this week. Asked about the European trade bloc, Trump said that tariffs will “definitely happen” for the EU, but was not as adamant about penalising the UK. While he stated that the UK “is out of line” on trade with the US, he also added that he was confident the UK situation “can be worked out” without tariffs.
Atlantic Pacific is monitoring the evolving situation very closely. Should you require further information regarding the above, then please do not hesitate to contact a member of the team.
