WHAT’S THE LATEST

Update as of 2/4: China announced retaliatory tariffs on select American imports, and other more targeted efforts, that would take effect on 2/10. 

On Saturday, February 1, President Trump signed three executive orders placing 25% tariffs on goods imported from Mexico and Canada (excluding energy resources which were imposed at 10%), as well as a 10% duty on goods from China (including products made in Hong Kong). The tariffs for China go into effect on Tuesday, February 4 (with limited exemptions), while the tariffs on Mexico and Canada have been paused for 30 days. Under the orders, de minimis treatment is removed for products of the three countries, the additional duty will not be eligible for duty drawback, and very few, limited exemptions are available.

WHAT WE KNOW

  • Canada, Mexico, and China are the United States' three largest trading partners.
  • Leaders in Canada have already announced retaliatory tariffs on U.S. goods.
  • The uncertainty created by these actions include the potential for a large-scale trade war and heightened inflationary pressure.
  • All companies relying on these countries are now facing unexpected disruptions and increased costs.
  • As costs to import goods to the U.S. increase companies are likely to see their working capital constricted and additional financial resources will be required to secure U.S. customs bonds.
  • This policy shift is just the first in a series with potential impact on global trade.
    • Minimizing disruption is crucial as we move forward, and SEKO is here to help you navigate this transition as smoothly as possible.

SEKO's GUIDANCE

  • Our team is actively monitoring developments day-by-day, ensuring we have the latest information to guide our clients.
  • U.S. warehouse space will become a premium – don’t wait until space is gone or disruptions escalate even further to secure what is necessary for your business needs.
  • U.S. Importers should ensure that they are enrolled in Customs and Border Protection’s Periodic Monthly Statement program, to allow for the most beneficial payment terms for newly implemented tariffs.
  • Schedule an hour of free consulting with our team of experts today to explore how we can keep your supply chain moving smoothly.