US trade actions
Trade tariffs, trade agreement renegotiations and sanctions continue to make headlines in the United States (US) and the list of impacted sectors and products is on the rise. In this increasingly interconnected world, businesses must look well beyond their domestic borders to evaluate the full impact on their supply chain. Any business with a global footprint will find this fluid landscape challenging to navigate, particularly when it comes to prospective planning.
Below you will find useful background and considerations for mitigating or planning for each area.
More detailed information on each area may be found on the Additional resources page.
Free Trade Agreement renegotiations
- North American Free Trade Agreement (Agreement in principle, named the USMCA, reached 30 September 2018).
- Korea-US Free Trade Agreement (concluded).
- USTR formally notified Congress it would begin bilateral negotiations with the EU on 16 October 2018. The EU has not taken the required steps to begin formal trade talks with the US. The European Commissioner for Trade Cecilia Malmström, the EU’s chief trade negotiator, has said the deal with be limited in what it will address and will not include agriculture.
- USTR formally notified Congress it would begin bilateral negotiations with Japan on 17 October 2018. Currency issues, beef and pork exports, and US tariffs on autos expected to be central to the talks.
- A number of other Free Trade Agreements may be reviewed or subjected to renegotiation.
25% and 10% additional tariffs levied on certain steel and aluminum imports, respectively. Quotas imposed on Brazilian, Argentine and South Korean steel; quotas imposed on Argentine aluminum; Australia exempt.
Automobiles and automotive parts under investigation.
Uranium under investigation as of 18 July 2018.
- Additional duties on solar panels and large residential washers and components
Seldom used Section 201 of the Trade Act of 1974 roars back in action — page 21
US trade sanctions
- Russia, Iran, North Korea and others
Section 301 — China intellectual property violations
Tariffs have been proposed or implemented on $250b of China origin goods to date, and there is the potential for $500b being impacted by punitive tariffs.
- World Trade Organization dispute; anticipated investment restrictions forthcoming
- Prolonged trade war — or at least disruption — taking shape
- Punitive duties of 25% on US$34b (818 Chinese goods) effective 6 July 2018
- Punitive duties of 25% on $16b (284 goods) 23 August 2018
- 10% additional duties on $200b Chinese origin goods effective 24 September 2018 (5,745 goods; list 3). Will increase to 25% 1 January 2019
- President Trump has signalled potential of a “list 4” of $267b remaining goods from China to be subject to punitive tariffs
The US could utilize 301 proceedings for other countries.
EY has developed a broad array of materials to help you navigate the complexities of doing business in a rapidly evolving trade environment. These materials can be accessed below and include detailed tax alerts, economic and policy briefs developed by EY‘s QUEST and Tax Policy teams and other thought leadership across Global Trade topics.