The US recently imposed tariffs on imports of steel and aluminum products from trade partners around the globe, as well as goods imported from China. In retaliation, trade partners have hit back with counter tariffs on US exports.
Canada’s Response
Beginning July 1st, Canada is set to impose tariffs on $12.8 billion worth of US goods, an amount equating to the value of steel and aluminum products imported into the US from Canada. US exports to Canada falling under Chapters 72 (i.e., 7206-7229) and 73 (i.e., 7301-7302, 7304-7306) will be subject to 25 percent duty. Whereas, goods found in the following chapters will be subject to 10 percent duty:
A more comprehensive list of the goods subject to these duties is available on the Government of Canada’s website.
Chinese Retaliation
In April, China implemented tariffs on 128 products from the US in response to Section 232 tariffs. Duties of 15 percent were applicable to products falling under Chapter 2 (i.e., 0203, 0206) and Chapter 76 (i.e., 7602). Duties of 25 percent were imposed on products included in Chapter 8 (i.e., 0801-0813), Chapter 12 (i.e., 1211), Chapter 22 (i.e., 2204, 2207), and Chapter 73 (i.e., 7304). The tariffs do not apply to all subheadings within these chapters.
European Union’s (EU) Retort
Effective June 20th, the EU will impose tariffs on $7.2 billion worth of US goods. Subject to 25 percent tariffs and covering 181 items, the products fall under the following chapters (the tariffs do not apply to all subheadings within these chapters):
Mexico, India, Japan, Russia, and Turkey plan to initiate retaliatory tariffs as well. Deringer will continue to provide guidance regarding tariff changes.