Global trade actions

Not surprisingly, US trade actions have, in many cases, been met with corresponding counter or retaliatory responses. For many businesses, it is difficult to weigh the final consequences to their bottom line; what might have started out as a positive benefit could ultimately turn into a negative consequence — and vice versa. As global developments play out, it will be important to stay apprised of late-breaking changes and be nimble enough to quickly make needed course corrections.

For more information on actions taken, please see below.

Americas

Canada

Canada’s 2019 customs compliance verification list update provided

  • Effective 20 February 2019

232 retaliatory duties of 10% to 25% on CA$16.6b US goods

  • Effective 1 July 2018
  • Steel, iron, aluminum, foods, hygiene products, household appliances and articles, recreational goods, and certain plywood, paper and paperboard products


Mexico

Mexico and MERCOSUR agree to adjust Economic Complementation Agreement No. 55

  • Effective 19 March 2019
  • Local content percentage (ICR) for automotive parts increased to 40% from a range of 10% to 30%

232 retaliatory duties of 7% to 25% on US$3b US goods

  • Effective 5 June 2018
  • Steel, pork, cheese, apples, bourbon, others with a “carousel” approach to add future products possible

Asia-Pacific

China

Countered US steel and aluminum tariffs with 25% duties on 128 items for US$2.7b, effective 2 April 2018

  • 301 retaliatory duties of 25% on US$34b and 545 US products, effective 6 July 2018; duty rates of 5% to 25% on US$60b and 5,207 US products, effective 23 August 2018; and proposed duties of US$16b on 114 goods
  • Set to challenge future tariffs or trade war actions from US


Japan

Japan has notified WTO of potential retaliation actions

  • No action taken to date
  • Holding trade consultations with the US — US–Japan Trade Agreement on Goods (negotiations announced
    26 September 2018)

Economic Partnership Agreement EU–Japan enters into force as of 1 February 2019

EMEIA

European Union

232 retaliatory duties of 25% announced on US$3.3b US goods

  • Effective 21 June 2018
  • Fruits and vegetables, cereals, tobacco, cosmetics, apparel/footwear, steel and aluminum products, motorcycles and video game consoles

European Commission deletes “domestic sale” principle from guidance document on customs valuation


Economic Partnership Agreement EU–Japan enters into force as of 1 February 2019


United Kingdom – Brexit

For more details on navigating through the Brexit tax landscape, EY has prepared a series of Tax Alerts, videos, webcasts and thought leadership.


India

232 retaliatory duties on US$241m US goods (30 products)

  • Effective 21 June 2018
  • Almonds, walnuts, apples, chemicals, metals and motorcycles


Turkey

232 retaliatory duties of 5% to 40% on US$267m US goods

  • Effective 21 June 2018