Potential New Tariffs for Europe & South America
US President Donald Trump is reinstating tariffs on industrial metals from Argentina and Brazil while considering up to 100% tariffs on French goods. Importers should stay informed about these potential changes.
- Tariffs on steel and aluminum from Argentina and Brazil are being restored after an initial exemption. Brazilian President Jair Bolsonaro is optimistic about appealing these tariffs.
- The U.S. Trade Representative is investigating potential tariffs on French products, which could affect items worth approximately $2.4 billion.
- Public comments on the proposed tariffs on French goods are open until January 6, 2020, allowing stakeholders to voice their opinions.
The potential new tariffs include reinstated tariffs on industrial metals from Argentina and Brazil, as announced by US President Donald Trump. Additionally, there is consideration for tariffs as high as 100% on French goods, which could impact importers from these regions significantly.
US President Donald Trump is putting back tariffs on industrial metals from Argentina and Brazil and is also considering tariffs up to 100% on French goods. While none of this has been implemented it is something to be aware of if you are importing goods from any of these countries.
SOUTH AMERICA
When President Trump imposed 25% tariffs on foreign steel claiming national security, Argentina and Brazil were among the nations that received an initial exemption from the Section 232 tariffs imposed in March 2018. Instead they have been subjected to a quota system. But on December 02, 2019, Trump announced that “effective immediately, I will restore the Tariffs on all Steel & Aluminum that is shipped into the U.S. from those countries.”
Following this unscheduled announcement, Brazilian President Jair Bolsonaro said he has “an open channel” with Trump and might appeal the tariffs. He is confident that Trump will listen to them.
EUROPE
The U.S. Trade Representative has completed the first phase of its investigation under section 301 of the Trade Act of 1974. It proposed that it may levy up to 100 percent on products of France. Click here to read the USTR report published December 2.
The tariff would affect a list of 63 tariff subheadings which include cheese, butter, yogurt, makeup, handbags, and other goods with an approximate trade value of $2.4 billion. A list of the products proposed by USTR for the additional duties may be found in the USTR’s announcement.
The USTR proposals are open for public comment until 6 January 2020.
Call 303‑365‑1000 to speak with one of our Commercial Import experts or email your Gallagher Broker if you have any questions regarding this or any other issue.